Question

Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 80 units. if the product sells for $6 per unit in a purely competitive market, the mrp of this additional worker is multiple choice $6. $8. $48. $80.

Answer 1

Considering that labor is the only variable input and an additional input increases from 72 to 80 units with the product costs of $6 per unit in a purely competitive market, then the mrp of the additional worker is $48.

Solution: (80 x $6) – (72 x $6) = $48