A Firm's Labor Input,total Output of Labor,and Product Price Schedules

Multiple Choice

A firm's labor input,total output of labor,and product price schedules are given below.Labor is the only variable input. Refer to the above table and information.What is the marginal revenue product of the fifth worker?

A) $6
B) $7
C) $8
D) $9
The marginal revenue product is the change in revenue earned due to the hiring of one more input.In this case,the fifth worker adds 4 units of output and $9 of revenue because revenue rises from $152 to $161.