Question

Question 2 options: Use the following total product schedule as a resource to answer questions a, b, and c. Assume that the quantities of other resources the firm employs remain constant. Total Product Schedule Number of Workers Total Product 0 0 1 15 2 28 3 38 4 43 5 46 Instructions: Enter all values as whole numbers (no decimal places). a) If the firm's product sells for a constant $2 per unit, what is the marginal revenue product of the second worker

Answer 1

Answer:

The marginal revenue product (MRP) = $26 (13 x $2).

Explanation:

a) Data and Calculations:

Total Product Schedule

Number of        Total     Marginal  Selling    Total       Marginal

Workers         Product   Product     Price    Revenue   Revenue

      0                   0              0           $2           $0            $0

       1                  15            15           $2         $30          $30

      2                 28            13           $2         $56          $26

      3                 38            10           $2         $76          $20

      4                 43             5           $2         $86           $10

      5                46             3           $2         $92            $6

b) The marginal revenue product is calculated by multiplying the marginal physical product (MPP) of the second worker by the marginal revenue (MR) $2 selling price.