Suppose the Marginal Product of the Second Worker Hired by a Firm

question 137

Multiple Choice

Suppose the marginal product of the second worker hired by a firm is 3, and the price of the last unit produced is $7.Which of the following is true of the marginal revenue product of the second worker?

• A)It must equal $21.
• B)It must be less than or equal to $21.
• C)It must be greater than or equal to $21.
• D)It equals $21 only if the firm is a price searcher (e.g., monopoly).
• E)We can conclude nothing about marginal revenue product.