3.Using your knowledge of marginal revenue product,explain the following: a 人m0 one tennin ti pais00Dgi呢40ecom erciaL The actor who partner is paid Marginal revenue product of labor,MRP is equal to marginal revenue from an incremental unit of output multiplied by the marginal product from an incremental unit of labor.or in other words.the extra revenue generated by having the tennis star appear in the ad.The famous tennis star isable to belp more than the actor. than the actor.The wage of the actor is determined by the supply and demand ofactors willing to play tennis with tennis stars. The president of an ailing savings and loan is paid not to stay in his job for the last two years of his contract. The marginal revenue product of the president of the ailing savings and loan is likely to be negative and therefre.the savings and loan is better off by paying the president not to show up.They have calculated that they will lose less (or gain more)by paying the president off and hiring someone else. A jumbo jet carrying 400 passengers is priced higher than a 250-passenger model even though both aircraft cost the same to manufacture. The ability of the larger jet to generate more revenue increases its value to the airline,and therefore the airline is willing to pay more for it. 4.The demands for the factors of production listed below have inc d.What you about nges in a the der and for elated c onsum er goods? If demands for the consumer goods remain unchanged,what other explanation is there for an increase in derived demands for these items? Computer memory chips In general,an increase in the demand for a good increases the demand for its factor inputs.The converse is not necessarily true;ie.,an increase in the demand for factor inputs does not necessarily imply an increase in the demand for the final pro The demand for an nput may increase due to a change in the use of other inputs in the prod uction process As the price of another input increases,its demand falls and the demand of substitutable inputs rises.In this case.the increase in the demand for computer memory chips must have been caused by an increase in the demand for personal computers given that computer mem ory chip are used only in computers,and there are nosu titutes for computer memory chip b. Jet fuel for passenger planes With an increase in the demand for jet travel the demand or jet fuel will increase.There are no substitutes for jet fuel.3. Using your knowledge of marginal revenue product, explain the following: a. A famous tennis star is paid $100,000 for appearing in a 30-second television commercial. The actor who plays his doubles partner is paid $500. Marginal revenue product of labor, MRPL, is equal to marginal revenue from an incremental unit of output multiplied by the marginal product from an incremental unit of labor, or in other words, the extra revenue generated by having the tennis star appear in the ad. The famous tennis star is able to help increase revenues far more than the actor, so he is paid much more than the actor. The wage of the actor is determined by the supply and demand of actors willing to play tennis with tennis stars. b. The president of an ailing savings and loan is paid not to stay in his job for the last two years of his contract. The marginal revenue product of the president of the ailing savings and loan is likely to be negative and therefore, the savings and loan is better off by paying the president not to show up. They have calculated that they will lose less (or gain more) by paying the president off and hiring someone else. c. A jumbo jet carrying 400 passengers is priced higher than a 250-passenger model even though both aircraft cost the same to manufacture. The ability of the larger jet to generate more revenue increases its value to the airline, and therefore the airline is willing to pay more for it. 4. The demands for the factors of production listed below have increased. What can you conclude about changes in the demand for the related consumer goods? If demands for the consumer goods remain unchanged, what other explanation is there for an increase in derived demands for these items? a. Computer memory chips In general, an increase in the demand for a good increases the demand for its factor inputs. The converse is not necessarily true; i.e., an increase in the demand for factor inputs does not necessarily imply an increase in the demand for the final product. The demand for an input may increase due to a change in the use of other inputs in the production process. As the price of another input increases, its demand falls and the demand of substitutable inputs rises. In this case, the increase in the demand for computer memory chips must have been caused by an increase in the demand for personal computers given that computer memory chips are used only in computers, and there are no substitutes for computer memory chips. b. Jet fuel for passenger planes With an increase in the demand for jet travel, the demand for jet fuel will increase. There are no substitutes for jet fuel