CFA Practice Question

There are 539 practice questions for this study session.

CFA Practice Question

If workers in a stereo factory can produce 6 stereos with 7 hours of labor and 10 stereos with 8 hours of labor, and the price of stereos is $100, the marginal revenue product for the 8th hour of production is ______.
Correct Answer: $400

The marginal revenue product is the marginal product of labor multiplied by the price of the product. In this case, the marginal product is 10 - 6 = 4 stereos.

User Contributed Comments 5

User Comment
isida MRP = marginal revenue x marginal product = [(1000 - 600)/4] x 4
stefdunk MRP = MP x P, or (10-6) x $100
ilgibe we are supposing MR = P, thus perfect competition..
YOUCANDOIT good point ilgibe!
fangluez when # of hours increased from 7 to 8, the # of output increased is 4. Therefore marginal product (MP) = 4.

MR = Price = $100

MRP = MR x MP = 100 x 4 = 400
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