Assume Labor Is the Only Variable Input and That an Additional

question 337

Multiple Choice

Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 80 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker is

• A)$6.
• B)$8.
• C)$48.
• D)$80.