Microeconomics (with Digital Assets, 2 terms (12 months) Printed Access Card) (MindTap Course List)
12th Edition
ISBN: 9781285738352
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 13, 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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Chapter 13 Solutions
Microeconomics (with Digital Assets, 2 terms (12 months) Printed Access Card) (MindTap Course List)
Ch. 13.1 - Prob. 1STCh. 13.1 - Prob. 2STCh. 13.1 - Prob. 3STCh. 13.1 - Prob. 4STCh. 13.2 - Prob. 1STCh. 13.2 - Prob. 2STCh. 13.2 - Prob. 3STCh. 13.2 - Prob. 4STCh. 13 - Prob. 1VQPCh. 13 - Prob. 2VQP
Ch. 13 - Prob. 3VQPCh. 13 - Prob. 4VQPCh. 13 - Prob. 5VQPCh. 13 - Prob. 1QPCh. 13 - Prob. 2QPCh. 13 - Prob. 3QPCh. 13 - Compare the firms least-cost rule with how buyers...Ch. 13 - Prob. 5QPCh. 13 - Prob. 6QPCh. 13 - Prob. 7QPCh. 13 - Prob. 8QPCh. 13 - Prob. 9QPCh. 13 - Prob. 10QPCh. 13 - Prob. 11QPCh. 13 - Prob. 12QPCh. 13 - Prob. 13QPCh. 13 - Prob. 14QPCh. 13 - Prob. 15QPCh. 13 - Prob. 16QPCh. 13 - Prob. 1WNGCh. 13 - Prob. 2WNGCh. 13 - Prob. 3WNGCh. 13 - Prob. 4WNGCh. 13 - Prob. 5WNG
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- PLANT OUTPUT (TONS) CAPITAL ($) LABOUR (HOURS) 1 605.3 18,891 700.2 2 566.1 19,201 651.8 3 647.1 20,655 822.9 4 523.7 15,082 650.3 5 712.3 20,300 859.0 6 487.5 16,079 613.0 7 761.6 24,194 851.3 8 442.5 11,504 655.4 9…arrow_forwardComplete the table below: Output TotalCost(RM) Totalvariablecost(RM) Totalfixedcost(RM)Averagefixedcost(RM)Averagetotalcost(RM)Marginalcost (RM) 0 505 16010 20020 25036 33058 40072 48088 580106 700130 820150 980arrow_forwardmarginal productarrow_forward
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