Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
$10
B
$25
C
$50
D
$100
Understanding the Answer
Let's break down why this is correct
Answer
Marginal revenue product of labor is a way to measure how much extra money a firm makes from hiring one more worker. To find it, you multiply the price at which the firm sells its product by the marginal product of labor. In this case, the firm sells each unit for $10 and the marginal product of labor is 5 units per hour. So, you multiply $10 by 5, which equals $50. This means that each additional worker contributes $50 to the firm's revenue each hour they work.
Detailed Explanation
The marginal revenue product of labor is found by multiplying the price per unit by the marginal product of labor. Other options are incorrect because This answer suggests that the revenue from one unit is the same as the price; This answer seems to multiply the price by a smaller number.
Key Concepts
Price of Output
Topic
Calculating Marginal Revenue Product
Difficulty
easy level question
Cognitive Level
understand
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