# Figure 28-7 Labor Total Product 0 0 1 3 2 18 3 43 4 55 In Figure 28-7, assume that the...

## Question:

*Figure 28-7*

Labor | Total Product |

0 | 0 |

1 | 3 |

2 | 18 |

3 | 43 |

4 | 55 |

In Figure 28-7, assume that the resource and output markets are perfectly competitive. If the wage rate is $60 per unit of labor and the output price is $5 a unit, the MRP of the third laborer is?

a. $5.

b. $125.

c. 25 units.

d. 43 units.

e. $215.

## Perfect competition

A perfect competition market is recognized as a market structure where a large number of purchasers and sellers are involved in selling the homogeneous products within the marketplace. Here, all the sellers and the buyers are price takers.

## Answer and Explanation: 1

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View this answerThe correct option is **Option b. $125.**

The marginal revenue product (MRP) is the change in the total revenue from employing an additional unit of...

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Chapter 3 / Lesson 41Learn the labor market definition and what happens in the labor market. See what the split labor market theory is and learn the different types of labor market.

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