The following table shows the marginal productivity of different units of labor for producing a product.Table 14.4
In the table,
MR: Marginal Revenue
MPP: Marginal Physical Product

-According to Table 14.4, what is the highest MRP the firm can reach? (MRP = MPP X MPP)
A)5
B)6
C)15
D)18
E)25

Question

The following table shows the marginal productivity of different units of labor for producing a product.Table 14.4
In the table,
MR: Marginal Revenue
MPP: Marginal Physical Product
 
-According to Table 14.4, what is the highest MRP the firm can reach? (MRP = MPP X MPP)
A)5 
B)6 
C)15 
D)18 
E)25

Quizplus · Accepted Answer

To find the maximum MRP, we need to look for the point where MPP and MR intersect. This happens at the 4th unit of labor, where MPP is 6 units and MR is $3. At this point, the MRP would be (6 x $3) = $18, which is the highest in the given table. Therefore, the best choice is D) 18.

The Following Table Shows the Marginal Productivity of Different Units