A firm's marginal product revenue curve
13:03
Khan AcademySal Khan
A firm's marginal product revenue curve
Every time a firm hires more labor, they get more output which means more revenue. In this video we begin thinking about how much incremental benefit a firm gets from hiring one more person.
Feb 2, 2012
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[GET ANSWER] Consider the graph of costs and revenue for a perfectly competitive firm. Assume the market price is equal to 600 per unit ofoutput.Shade the area representing profit for the firm.Cost and Revenue ( per unit)800750700650600550500450400350300250200150100500Marginal CostProfitAverage Total CostMarginal RevenueAverage Variable Cost0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Units of OutputThe profit-maximizing output isThe firm earns a profit of units.
[GET ANSWER] Consider the graph of costs and revenue for a perfectly competitive firm. Assume the market price is equal to 600 per unit ofoutput.Shade the area representing profit for the firm.Cost and Revenue ( per unit)800750700650600550500450400350300250200150100500Marginal CostProfitAverage Total CostMarginal RevenueAverage Variable Cost0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Units of OutputThe profit-maximizing output isThe firm earns a profit of units.
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[GET ANSWER] Consider the graph of costs and revenue for a perfectly competitive firm. Assume the market price is equal to 600 per unit ofoutput.Shade the area representing profit for the firm.Cost and Revenue ( per unit)800750700650600550500450400350300250200150100500Marginal CostProfitAverage Total CostMarginal RevenueAverage Variable Cost0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Units of OutputThe profit-maximizing output isThe firm earns a profit of units.
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