A firm has the production function , where L is labour input and Q is output. If the firm is a monopolist with a demand curve , what is the MRP (Marginal Revenue Product of Labour) curve?
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DSE 2007 Question 21: Factor markets and income distribution
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A firm has the production function Q=12L-L², where L is labour input and Q is output. If the firm is a monopolist with a demand curve P(Q)=100-Q, what is the MRP _L (Marginal Revenue Product of Labour) curve? (A) 1200-288L+72L²-4L³ (B) 1200-288L-72L²+4L³ (C) 1200-488L+72L²-4L³ (D) 1200-488L-72L²+4L³
Also written as: A firm has the production function Q=12L-L^2, where L is labour input and Q is output. If the firm is a monopolist with a demand curve P(Q)=100-Q, what is the MRP _L (Marginal Revenue Product of Labour) curve?
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What this question tests
This question is on Derived demand and marginal revenue product, part of Factor markets and income distribution in Microeconomics.
Why firms demand inputs: the value of what the last unit adds to output or revenue.
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