A shop foreman determines that an employee would produce two more units of output if he worked one additional hour. The product currently sells for $15.00 per unit and the firm is a price taker. Which of the following choices most accurately describes the relationship between the marginal revenue (MR) and marginal revenue product (MRP) from the additional hour of labor input? A) MRP = MR. B) MR < $15 and MRP = MR. C) MR = $15 and MRP < MR. D) MRP > MR.
the answer’s D I think this question was posted last week.
Thx I look it up…
MR= $15 MRP = 2 x 15 = $30 D) MRP>MR
Thanks…makes sense now