In a perfectly competitive market,if ten cases of spring water are sold at a price of $6 each and the marginal product of the last unit of labor is 5 units,then the marginal revenue product of that last unit of labor is ______
A)$60.
B)$30.
C)$50.
D)$2.
E)$0.60.

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated as the marginal product of labor (MPL) times the price of the output. Here, MPL is 5 units and the price per unit is $6, so MRP = 5 units * $6/unit = $30.

In a Perfectly Competitive Market,if Ten Cases of Spring Water