N | Q | MP | MR | MRP |
0 | 0 | 0 | 18 | 0 |
1 | 15 | 15 | 16 | 240 |
2 | 28 | 13 | 14 | 182 |
3 | 39 | 11 | 12 | 132 |
4 | 49 | 10 | 10 | 100 |
5 | 57 | 8 | 8 | 64 |
6 | 63 | 6 | 6 | 36 |
7 | 67 | 4 | 4 | 16 |
8 | 69 | 2 | 2 | 4 |
| The table to the left is the one we saw before for a firm facing a downward sloping demand curve. The table to the right shows the change brought about by an increase in productivity.
Because the input becomes more produtive output, Q, Marginal Product, MP and, Marginal Revenue Product, MRP, all increase. Since the MRP curve is the demand curve for the factor, demand increases, as shown in the graph on the previous page.
|
N | Q | MP | MR | MRP |
0 | 0 | 0 | 18 | 0 |
1 | 20 | 20 | 16 | 320 |
2 | 38 | 18 | 14 | 252 |
3 | 54 | 16 | 12 | 192 |
4 | 68 | 14 | 10 | 140 |
5 | 80 | 12 | 8 | 96 |
6 | 90 | 10 | 6 | 60 |
7 | 98 | 8 | 4 | 32 |
8 | 104 | 6 | 2 | 12 |
|