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

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

Step-by-step 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.