Question

(1) Quantity of Factor X	(2) Quantity of Output	(3) Product Price	(4) Marginal Physical Product	(5) Marginal Revenue Product
0	10	$110
1	18	$110		C
2	24	$110	A	D
3	27	$110	B	E
4	28	$110		F

The dollar amounts that go in blanks E and F are, respectively,

  

a. $330 and $110.

   

b. $70 and $60.

   

c. $84 and $72.

   

d. $60 and $70.

   

e. There is not enough information to answer the question.

Could you explain this?

Answer 1

Option a

$330 and $110

MP(n)=(TP(n)-TP(p))/(n-p)
MP(n)=marginal product of n th unit of input
TP(n)= total product of n inputs
TP(p)=total product of p inputs
it is true for n>p
MP(1)=(18-10)/(1-0)=8 and so on

MRP(3)=3*110=330 and MRP(4)=1*110=$110

Quantity of	Quantity of	Product	Marginal	Marginal
Factor X	Output	Price	Physical Product	Revenue Product
0	10	110
1	18	110	8	880
2	24	110	6	660
3	27	110	3	330
4	28	110	1	110