7. Marginal Revenue Product Per Hour of Labor in Sandwich Production (One Grill) 5.00 .50 10 35 3 2.50 .50 5 40 4 1.00 .50 2 42 5 a The “price” is essentially profit per sandwich; see discussion in text. 0 .50 0 42 6 7.50 .50 15 25 2 5.00 $ .50 $ 10 10 1 0 0 (5) MARGINAL REVENUE PRODUCT ( MP L X P X ) (PER HOUR) (4) PRICE ( P X ) (VALUE ADDED PER SANDWICH) a (3) MARGINAL PRODUCT OF LABOR ( MP L ) (SANDWICHES PER HOUR) (2) TOTAL PRODUCT (SANDWICHES PER HOUR) (1) TOTAL LABOR UNITS (EMPLOYEES)