Asked by
Deepak Shukla
on Nov 26, 2024
Verified
Marginal revenue product measures the
A) amount by which the addition of one more worker increases a firm's total revenue.
B) decline in product price that a firm must accept to sell the extra output of one more worker.
C) increase in total resource cost resulting from the hire of one extra unit of a resource.
D) increase in total revenue resulting from the production of one more unit of a product.
Marginal Revenue Product
The extra income produced by employing an additional unit of a production resource.
- Familiarize oneself with the notion of Marginal Revenue Product (MRP) and the methodology employed in its calculation.
Verified Answer
AS
Learning Objectives
- Familiarize oneself with the notion of Marginal Revenue Product (MRP) and the methodology employed in its calculation.