Assume labor is the only variable input and that an additional unit of labor increases total output

Question:

Assume labor is the only variable input and that an additional unit of labor increases total output from 65 to 73 units. If the product sells for $4 per unit in a perfectly competitive market, what is the MRP of this additional worker? Would the MRP be higher or lower than this amount if the firm were a monopolist and had to lower its price to sell all 73 units?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Contemporary Labor Economics

ISBN: 9780073375953

9th Edition

Authors: Campbell McConnell, Stanley Brue, David Macpherson

Question Posted: