Quantity of Labor	MP of Labor	MRP of Labor	Quantity of Capital	MP of Capital	MRP of Capital
1	15	$ 45	1	8	$ 24
2	12	36	2	6	18
3	9	27	3	5	15
4	6	18	4	4	12
5	3	9	5	3	9
6	1	3	6	2	6
Refer to the given data. This firm is selling its product in

Multiple Choice

an imperfectly competitive market at prices that decline as sales increase.

a purely competitive market at $3 per unit.

a purely competitive market at $2 per unit.

an imperfectly competitive market at $3 per unit.

To determine the type of market in which this firm is selling its product, we need to look at the relationship between the Marginal Product (MP) of labor and the Marginal Revenue Product (MRP) of labor.

The Marginal Revenue Product (MRP) of labor is calculated by multiplying the Marginal Product (MP) of labor by the price per unit of the product. So, if we divide the MRP by the MP for each unit of labor, we should get the per-unit price of the product in a purely competitive market, where the price remains constant regardless of the quantity produced.

Let's examine the dataTo determine the type of market in which this firm is selling its product, we need to look at the relationship between the Marginal Product (MP) of labor and the Marginal Revenue Product (MRP) of labor.

The Marginal Revenue Product (MRP) of labor is calculated by multiplying the Marginal Product (MP) of labor by the price per unit of the product. So, if we divide the MRP by the MP for each unit of labor, we should get the per-unit price of the product in a purely competitive market, where the price remains constant regardless of the quantity produced.

Let's examine the 

For labor:
\[
\text{MRP of Labor} = \text{MP of Labor} \times \text{Price per Unit}
\]

Checking for a consistent price:

- For 1 unit of labor: $\frac{\text{MRP of Labor}}{\text{MP of Labor}} = \frac{45}{15} = 3$
- For 2 units of labor: $\frac{36}{12} = 3$
- For 3 units of labor: $\frac{27}{9} = 3$
- For 4 units of labor: $\frac{18}{6} = 3$
- For 5 units of labor: $\frac{9}{3} = 3$
- For 6 units of labor: $\frac{3}{1} = 3$

Since the price per unit remains constant at $3, this indicates the product is being sold in a **purely competitive market at $3 per unit**.

### Answer:
The correct choice is:
- **A purely competitive market at $3 per unit.**

Would you like further explanation on this analysis or have any additional questions?

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Here are 5 related questions to explore this topic further:
1. How would the analysis change if the MRP did not remain constant?
2. What would be the implications if the firm were in an imperfectly competitive market?
3. How does MRP help a firm decide how much labor to hire?
4. What is the significance of marginal revenue in market structures?
5. How is marginal product related to marginal cost?

**Tip:** In a purely competitive market, the price per unit remains constant regardless of the quantity produced or sold.

Refer to the given data. This firm is selling its product in multiple choice options: an imperfectly competitive market at prices that decline as sales increase, a purely competitive market at $3 per unit, a purely competitive market at $2 per unit, or an imperfectly competitive market at $3 per unit.

Explore how to determine the type of market a firm is selling in by analyzing the Marginal Revenue Product (MRP) of labor. This example shows consistent pricing at $3 per unit in a purely competitive market, supported by detailed calculations. Suitable for high school economics students.

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