Economics (with Digital Assets, 2 Term (12 Months) Printed Access Card)
12th Edition
ISBN: 9781285738338
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 27, Problem 1VQP
To determine
Describe the equality of marginal revenue product and value marginal product.
Expert Solution & Answer
Explanation of Solution
The marginal revenue product (MRP) shows the market value of the product, and the value marginal product (VMP) shows the firms’ revenue by adding an additional unit of labor. When MRP is equal to VMP, it implies that the market is a competitive one. In the case of a
Economics Concept Introduction
Marginal revenue product (MRP): The marginal revenue product is the prevailing value of a marginal output in the market.
Here,
MRP = Marginal revenue product
MPP= Marginal physical product
MR= Marginal revenue
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Students have asked these similar questions
Total revenue (TR) is equal to
Number of Workers Units Produced Marginal Product Average Product 0 0 —– —- 1 20 2 35 3 45 4 50 5 45
What is the difference between marginal revenue product(MRP) and value marginal product (VMP)?
Chapter 27 Solutions
Economics (with Digital Assets, 2 Term (12 Months) Printed Access Card)
Ch. 27.1 - Prob. 1STCh. 27.1 - Prob. 2STCh. 27.1 - Prob. 3STCh. 27.1 - Prob. 4STCh. 27.2 - Prob. 1STCh. 27.2 - Prob. 2STCh. 27.2 - Prob. 3STCh. 27.2 - Prob. 4STCh. 27 - Prob. 1VQPCh. 27 - Prob. 2VQP
Ch. 27 - Prob. 3VQPCh. 27 - Prob. 4VQPCh. 27 - Prob. 5VQPCh. 27 - Prob. 1QPCh. 27 - Prob. 2QPCh. 27 - Prob. 3QPCh. 27 - Compare the firms least-cost rule with how buyers...Ch. 27 - Prob. 5QPCh. 27 - Prob. 6QPCh. 27 - Prob. 7QPCh. 27 - Prob. 8QPCh. 27 - Prob. 9QPCh. 27 - Prob. 10QPCh. 27 - Prob. 11QPCh. 27 - Prob. 12QPCh. 27 - Prob. 13QPCh. 27 - Prob. 14QPCh. 27 - Prob. 15QPCh. 27 - Prob. 16QPCh. 27 - Prob. 1WNGCh. 27 - Prob. 2WNGCh. 27 - Prob. 3WNGCh. 27 - Prob. 4WNGCh. 27 - Prob. 5WNG
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