Exhibit 10-1Use the information in the accompanying chart to answer the following question(s). The firm hires labor competitively and sells its product in a competitive price-taker market.
Units of Labor
Total Output
Product
(per day)
(dollars)
Price
1
15
6
2
30
6
3
40
6
4
48
6
5
54
6
6
59
6
7
62
6
Refer to Exhibit 10-1. What is the marginal revenue product of the fifth unit of labor?
A. $6.
B. $36.
C. $54.
D. $324.
Answer: B
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