Marginal revenue product is defined as the change in total revenue that results from the employment of an additional unit of a resource. A producer wishes to determine how the addition of pounds of plastic will affect its MRP and profits. See the table below, and answer each of the questions.
| Pounds of plastic (quantity of resource) | Number of assemblies (total product) | Price of assemblies ($) |
| 0 | 0 | – |
| 1 | 15 | 13 |
| 2 | 30 | 11 |
| 3 | 40 | 9 |
| 4 | 55 | 7 |
| 5 | 58 | 5 |
a. The marginal product of the 3rd pound of plastic is ________.
b. The marginal revenue product of the 3rd pound of plastic is ______.
c. The price of plastic is $135 per pound. To maximize profit, the producer should produce
__________________.
d. The price of plastic is $135 per pound. To maximize profit, the producer should buy and use:
________________.
| Grading Criteria Assignments | Maximum Points |
| Meets or exceeds established assignment criteria | 40 |
| Demonstrates an understanding of lesson concepts | 20 |
| Clearly presents well-reasoned ideas and concepts | 30 |
| Uses proper mechanics, punctuation, sentence structure, and spelling | 10 |
| Total | 100 |