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Q.28-1

Expert-verified
Found in: Page 645

### Economics Today

Book edition 19th
Author(s) Roger Miller
Pages 753 pages
ISBN 9780134478777

# The following table depicts the output of a firm that manufactures computer printers. The printers sell for $100$each. Labor Input (workers per week) Total Output ( printers per week) 10 200 11 218 12 234 13 248 14 260 15 270 16 278Calculate the marginal product and marginal revenue product at each input level above 10 units.

The change in total physical output divided by the change in labor input equals marginal physical product.

See the step by step solution

## step 1 Introduction

The production of a company that makes computer printers is shown in the table below.

The marginal physical product and marginal revenue product have been determined.

 Labor Input(workers per week) Total PhysicalOutput(printers per week) Marginal PhysicalProduct Marginal Revenue Product$\left(\right)$ 10 200 - - 11 218 18 1800 12 234 16 1600 13 248 14 1400 14 260 12 1200 15 270 10 1000 16 278 8 800

The Labor Input, Total Physical Output, Marginal Physical Product (MPP), and Marginal Revenue Product are all represented in the table above (MRP).

## step 2    Explanation

• The change in total physical output divided by the change in labor input equals marginal physical product.
• The price into MPP equals the marginal revenue product.
• The printer costs $100$per unit in this case.