$$\begin{array}{l}
\begin{array} { cc }
\text { Units of Input}&\text { Units of Outputs }\
1 & 3 \
2 & 7 \
3 & 10 \
4 & 12 \
5 & 13 \
6 & 12
\end{array}
\end{array}$$
-If this firm were a perfect competitor selling its entire output at a price of $1,the marginal revenue product of the third unit of input would be

Question

$$\begin{array}{l}
\begin{array} { cc } 
\text { Units of Input}&\text { Units of Outputs }\
1 & 3 \
2 & 7 \
3 & 10 \
4 & 12 \
5 & 13 \
6 & 12
\end{array}
\end{array}$$
-If this firm were a perfect competitor selling its entire output at a price of $1,the marginal revenue product of the third unit of input would be

Quizplus · Accepted Answer

The marginal revenue product (MRP) is the additional revenue generated from using one more unit of input. For the third unit of input, the output increases from 7 to 10, which is an increase of 3 units. Since the price is $1 per unit, the MRP is 3 * $1 = $3.

-If This Firm Were a Perfect Competitor Selling Its Entire