Math Solutions

(Solution Library) Marginal revenue product is defined as the change in total revenue that results from the employment of an additional unit of a resource. A widget

Question: Marginal revenue product is defined as the change in total revenue that results from the employment of an additional unit of a resource. A widget producer wishes to determine how the addition of pounds of rubber will affect its MRP and profits. See the table below, and answer each of the questions. (40pts/10pts each)

Pounds of rubber
(quantity of resource) 		Number of widgets
(total product) 		Price
of widgets ($)
0
1
2
3
4
5 		0
20
35
45
50
53 		-
12
10
8
6
4
  1. The marginal product of the 3 rd pound of rubber is ______________.
    b. The marginal revenue product of the 3 rd pound of rubber is ________.
    c. The price of rubber is $110 per pound. To maximize profit, the widget producer should produce
    ________________.
    Price: $2.99
    Solution: The downloadable solution consists of 2 pages
    Deliverable: Word Document


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