Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
$50
B
$30
C
$10
D
$100
Understanding the Answer
Let's break down why this is correct
Answer
The Marginal Revenue Product of Labor (MRP) is a way to measure how much extra money a business makes when it hires one more worker. To find the MRP, you multiply the marginal product of labor, which tells us how many additional units a worker can produce, by the price of the product. In this case, the marginal product of labor is 5 units, and the price of the product is $10. So, you would calculate MRP by multiplying 5 units by $10, which equals $50. This means that hiring one more worker would bring in an additional $50 in revenue for the business.
Detailed Explanation
To find the MRP, you multiply the marginal product by the price. Other options are incorrect because This answer might come from thinking the price is lower or the output is less; This answer suggests only one unit is produced.
Key Concepts
marginal product
Topic
Marginal Revenue Product of Labor
Difficulty
easy level question
Cognitive Level
understand
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