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Question
The Acme Company is a perfect competitor in its input markets and a monopolist in its output market. Its average product of labor is 30, the marginal product of labor is 20, the price of labor is $20, and the price of the output is $5. For Acme Company, the marginal revenue product of laborA) is $100.
B) is $150.
C) is $400.
D) is $600.
E) cannot be determined with the information provided.
Answer
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Q:
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Q:
The marginal revenue product can be expressed as the
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B) increment to revenue received from one additional unit of input hired.
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D) average physical product of the input times the marginal revenue received from the sale of the final product.