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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Labor Market: Definition & Theory
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Chapter 3 / Lesson 41
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Learn 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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