Total Revenue Product with six units of labor would be

A) $200.
B) $340.
C) $1,000.
D) $1,200.

Question

Total Revenue Product with six units of labor would beA) $200.B) $340.C) $1,000.D) $1,200.

katie overton · Accepted Answer

Final Answer : D, Explanation :  Total Revenue Product (TRP) is calculated by multiplying the quantity produced by the price at which it is sold.Given that the output elasticity of labor is constant and equal to 2, this means that doubling the labor input will double the output. So, 3 units of labor will produce 100 units of output and generate $1,200 in revenue (since each unit of output sells for $12). Therefore, the total revenue product with six units of labor would be double that, which is $2,400.

Total Revenue Product with six units of labor would be

A) $200.
B) $340.
C) $1,000.
D) $1,200.

Definitions

Learning Objectives

Learning Objectives

Related questions