What is the marginal revenue product of third unit of labor

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Problem

The following table shows productivity for different units of labor:

Labor Units     Total Product
   1                       12
   2                       21
   3                       27
   4                       32
   5                       36

(A) If the firm's product sells for a constant $2.00 per unit, what is the marginal revenue product of the third unit of labor?

(B) If the firm's product sells for a constant $2.00 per unit and the wage rate is $8, how many units of labor will this firm hire?

(C) If the firm can sell 12 units of its product at $1.00 per unit and and 21 units at $0.80 per unit, what is the marginal revenue product of the second unit of labor?

 

Reference no: EM131941818

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