Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
$50
B
$10
C
$5
D
$15
Understanding the Answer
Let's break down why this is correct
Answer
To find the Marginal Revenue Product (MRP), we need to multiply the Marginal Product of Labor (MPL) by the price of the product. In this case, the MPL for the additional worker is 10 units of output, and the price of each unit is $5. So, we calculate MRP by taking 10 units and multiplying it by $5, which gives us an MRP of $50. This means that hiring this additional worker will generate $50 in revenue for the firm. Therefore, the value of the additional worker is significant because it shows how much money they can bring in by producing more output.
Detailed Explanation
The Marginal Revenue Product is found by multiplying the MPL by the price. Other options are incorrect because This answer might come from thinking only about the MPL; This option seems to ignore the output amount.
Key Concepts
Marginal Product of Labor (MPL)
Topic
Calculating Marginal Revenue Product
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.