Marginal Revenue Product

Marginal revenue product is defined as the change in total revenue that results from the employment of an additional unit of a resource. A producer wishes to determine how the addition of pounds of plastic will affect its MRP and profits. See the table below, and answer each of the questions.

Pounds of plastic (quantity of resource)	Number of assemblies (total product)	Price of assemblies ($)
0	0	–
1	15	13
2	30	11
3	40	9
4	55	7
5	58	5

a. The marginal product of the 3rd pound of plastic is ________.

b. The marginal revenue product of the 3rd pound of plastic is ______.

c. The price of plastic is $135 per pound. To maximize profit, the producer should produce

__________________.

d. The price of plastic is $135 per pound. To maximize profit, the producer should buy and use:

________________. 

 

Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!

NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.