Answer to Question #212693 in Microeconomics for Mammy

Question

The marginal revenue of a product is sh 300 and we know that total revenue is zero when x is zero the marginal cost is sh 200 and we are given that when x is zero the total cost equals to ksh.120,000

Answer 1

The marginal revenue product (MRP), also known as the marginal value product, is the revenue generated by adding one unit of resource. The marginal revenue product (MRP) is derived by multiplying the resource's marginal physical product (MPP) by the marginal revenue (MR) generated.