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Business Economics EBK ECONOMICS TODAY

Marginal product is estimated by subtracting total product at each successive unit of labour input. M P n = T P n − T P n − 1 . Marginal Revenue product is the product of marginal product and marginal revenue or price of the last unit of goods sold. M R P = M R * M P . Labour Input(workers per week) Total Output (Printers per week) Marginal Product (MP) Price of the product (P=MR) Marginal Revenue Product (MR*MP) 10 200 - $100 - 11 218 18 $100 $1800 12 234 16 $100 $1600 13 248 14 $100 $1400 14 260 12 $100 $1200 15 270 10 $100 $1000 16 278 8 $100 $800 The firm will hire workers till its marginal revenue product is equal to its marginal cost. M a r g i n a l C o s t = M a r g i n a l R

Marginal product is estimated by subtracting total product at each successive unit of labour input. M P n = T P n − T P n − 1 . Marginal Revenue product is the product of marginal product and marginal revenue or price of the last unit of goods sold. M R P = M R * M P . Labour Input(workers per week) Total Output (Printers per week) Marginal Product (MP) Price of the product (P=MR) Marginal Revenue Product (MR*MP) 10 200 - $100 - 11 218 18 $100 $1800 12 234 16 $100 $1600 13 248 14 $100 $1400 14 260 12 $100 $1200 15 270 10 $100 $1000 16 278 8 $100 $800 The firm will hire workers till its marginal revenue product is equal to its marginal cost. M a r g i n a l C o s t = M a r g i n a l R

EBK ECONOMICS TODAY

EBK ECONOMICS TODAY

18th Edition

ISBN: 9780133920116

Author: Miller

Publisher: YUZU

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Chapter 28, Problem 2P

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Chapter 28, Problem 1P

Chapter 28, Problem 3P