Question

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	278

Calculate the marginal product and marginal revenue product at each input level above 10 units.

Short answer

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

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 Physical Output (printers per week)	Marginal Physical Product	Marginal Revenue Product ($)
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 labour input equals marginal physical product.
• The price into MPP equals the marginal revenue product.
• The printer costs $100 per unit in this case.