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# Selecting the optimal output level

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Marginal revenue product is defined as the change in total revenue that results from the employment of an additional unit of a resource. A producer wishes to determine how the addition of pounds of plastic will affect its MRP and profits. See the table in the attached file and answer each of the questions.

a. The marginal product of the 3rd pound of plastic is ________.
b. The marginal revenue product of the 3rd pound of plastic is ______.
c. The price of plastic is \$135 per pound. To maximize profit, the producer should produce
__________________.
d. The price of plastic is \$135 per pound. To maximize profit, the producer should buy and use:
________________.

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#### Solution Summary

This solution depicts the steps to choose the optimal output level in the given case.

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