Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm. $$\begin{array} { | c | c | c | }
\hline \begin{array} { c }
\text { Total Number of } \
\text { Units of the } \
\text { Factor }
\end{array} & \begin{array} { c }
\text { Total Number of } \
\text { Units of Output }
\end{array} & \begin{array} { c }
\text { Price per Unit } \
\text { of Output }
\end{array} \
\hline 10 & 20 & \$ 10 \
\hline 11 & 44 & \$ 10 \
\hline 12 & 64 & \$ 10 \
\hline 13 & 78 & \$ 10 \
\hline 14 & 84 & \$ 10 \
\hline 15 & 86 & \$ 10 \
\hline
\end{array}$$ TABLE 13- 1
-Refer to Table 13- 1.The marginal revenue product of the 15th unit of the factor is
A)$60.
B)$820.
C)$150.
D)$20.
E)- $20.

Question

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm. $$\begin{array} { | c | c | c | } 
\hline \begin{array} { c } 
\text { Total Number of } \
\text { Units of the } \
\text { Factor }
\end{array} & \begin{array} { c } 
\text { Total Number of } \
\text { Units of Output }
\end{array} & \begin{array} { c } 
\text { Price per Unit } \
\text { of Output }
\end{array} \
\hline 10 & 20 & \$ 10 \
\hline 11 & 44 & \$ 10 \
\hline 12 & 64 & \$ 10 \
\hline 13 & 78 & \$ 10 \
\hline 14 & 84 & \$ 10 \
\hline 15 & 86 & \$ 10 \
\hline
\end{array}$$ TABLE 13- 1
-Refer to Table 13- 1.The marginal revenue product of the 15th unit of the factor is
A)$60.
B)$820.
C)$150.
D)$20.
E)- $20.

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated as the change in total revenue from employing an additional unit of the factor. From 14 to 15 units, output increases from 84 to 86 units. The price per unit is $10, so the MRP is (86-84) * $10 = $20.

Consider the Following Production and Cost Schedule for a Firm