(Figure: MPP and MRP) Unit Price = $5
In the table, what is the marginal revenue product of the third worker?
$\begin{array}{|l|l|l|l|l|}
\hline\text { Labor } & \text { Total } & \mathrm{MPP}_{L} &\text { Total } & \mathrm{MRP}_{L} \
& \text { Product } & & \text { Revenue } & \
& \text { (Q) } & & \text { (TR) } &\
\hline & 35 & 35 & ? & \$ 175 \
\hline 2 & 75 & 40 & ? & \$ 200 \
\hline 3 & 105 & 30 & \$ 525 & ? \
\hline 4 & 130 & 25 & \$ 650 & ? \
\hline 5 & 150 & 20 & \$ 750 & ?\
\hline
\end{array}$
A) $100
B) $150
C) $200
D) $90

Question

(Figure: MPP and MRP) Unit Price = $5
In the table, what is the marginal revenue product of the third worker?
 $\begin{array}{|l|l|l|l|l|}
 \hline\text { Labor } & \text { Total } & \mathrm{MPP}_{L} &\text { Total } & \mathrm{MRP}_{L}  \
& \text { Product } & & \text { Revenue } & \
& \text { (Q) } & & \text { (TR) } &\
 \hline & 35 & 35 & ? & \$ 175 \
\hline 2 & 75 & 40 & ? & \$ 200 \
\hline 3 & 105 & 30 & \$ 525 & ? \
\hline 4 & 130 & 25 & \$ 650 & ? \
\hline 5 & 150 & 20 & \$ 750 & ?\
\hline
\end{array}$
A) $100
B) $150
C) $200
D) $90

Quizplus · Accepted Answer

The marginal revenue product (MRP) is calculated by multiplying the marginal physical product (MPP) by the unit price. For the third worker, MPP is 30 and the unit price is $5, so MRP = 30 * $5 = $150.

(Figure: MPP and MRP) Unit Price = $5 in the Table

(Figure: MPP and MRP) Unit Price = $5
in the Table