If labor is the only variable input, an additional worker increases output from 72 units to 78 units, and the product price is $6, the marginal revenue product from an additional worker is equal to:

Question

If labor is the only variable input, an additional worker increases output from 72 units to 78 units, and the product price is $6, the marginal revenue product from an additional worker is equal to:​

Quizplus · Accepted Answer

The marginal revenue product (MRP) is equal to the marginal product of labor multiplied by the product price.

In this case, the marginal product of labor is the increase in output from 72 units to 78 units, which is 6 units.

Therefore, the MRP of an additional worker is:

MRP = 6 units x $6 = $36

So the best choice is B, as it represents the correct calculation for the MRP of an additional worker.

If Labor Is the Only Variable Input, an Additional Worker