Question

Time Left:1:26:23 Samuel Koresky: Attempt 1 x Number of droids 0 1 2 3 4 5 Output of moisture (barrels per month) 0 30 55 75 90 100 Reference: Ref 12-1 Luke Skywalker's Uncle Owen operates a moisture farm on the planet Tatooine. The moisture farm utilizes droids as a resource to produce the moisture. Owen's production function is given in the accompanying table. If a barrel of moisture sells for 50 Republic Credits, what is the marginal revenue product of the fifth droid? OA) 500 Republic Credits OB) 10 barrels of moisture C) 5000 Republic Credits OD) 100 barrels of moisture

Answer 1

Marginal product of fifth droid=100-90=10 unit of moisture

and marginal Revenue product of 5th droid=MPL*MR=10*50=500 republic credit.

ans is A