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Basic Question 24 of 29
If workers in a stereo factory can produce 6 stereos with 7 hours of labor and 10 stereos with 8 hours of labor, and the price of stereos is $100, the marginal revenue product for the 8th hour of production is ______.
User Contributed Comments 5
| User | Comment |
|---|---|
| isida | MRP = marginal revenue x marginal product = [(1000 - 600)/4] x 4 |
| stefdunk | MRP = MP x P, or (10-6) x $100 |
| ilgibe | we are supposing MR = P, thus perfect competition.. |
| YOUCANDOIT | good point ilgibe! |
| fangluez | when # of hours increased from 7 to 8, the # of output increased is 4. Therefore marginal product (MP) = 4. MR = Price = $100 MRP = MR x MP = 100 x 4 = 400 |
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Learning Outcome Statements
determine and interpret break even and shutdown points of production, as well as how economies and diseconomies of scale affect costs under perfect and imperfect competition
CFA® 2024 Level I Curriculum, Volume 1, Module 1.