Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
$100
B
$80
C
$50
D
$25
Understanding the Answer
Let's break down why this is correct
Answer
To find the marginal revenue product of labor (MRPL), we need to multiply the marginal product of labor (MPL) by the price of the product. In this case, the MPL is 20 units, which means that each additional worker produces 20 extra units of the product. Since the price of each unit is $5, we calculate the MRPL by taking 20 units and multiplying it by $5. This gives us MRPL = 20 x 5, which equals $100. Therefore, the MRPL is $100, meaning that each extra worker adds $100 to the firm's revenue.
Detailed Explanation
To find the MRPL, multiply the MPL by the price. Other options are incorrect because This answer might come from confusing the numbers; This could happen if you mistakenly divided instead of multiplied.
Key Concepts
Marginal Product of Labor (MPL)
Factors of Production
Topic
Calculating Marginal Revenue Product
Difficulty
medium level question
Cognitive Level
understand
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