If Total Product for Each of Five Units of Labor

question 198

Multiple Choice

If total product for each of five units of labor is 10, 16, 20, 30, and 34, respectively, the marginal product of the third unit is

• A)20
• B)10
• C)4
• D)0
• E)6

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, such as labor or capital.

Marginal Revenue Product Curve

A graph that illustrates the additional revenue generated from employing one more unit of a resource.

Variable Input

relates to a production factor that can be adjusted in the short term to change the level of output, such as labor or raw materials.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor, in the production process.