What is the marginal revenue product of labor $\left(M R P_{L}\right)$ ?
Choose 1 answer:
(A) the additional revenue a firm earns if it uses one more unit of labor.

B The additional revenue a firm earns divided by the quantity produced
(c) the additional cost of using one more unit of labor.
(D) The additional revenue a firm earns from selling one more unit of output
(E) The amount of capital needed to balance out labor.

Question

What is the marginal revenue product of labor $\left(M R P_{L}\right)$ ?
Choose 1 answer:
(A) the additional revenue a firm earns if it uses one more unit of labor.

B The additional revenue a firm earns divided by the quantity produced
(c) the additional cost of using one more unit of labor.
(D) The additional revenue a firm earns from selling one more unit of output
(E) The amount of capital needed to balance out labor.

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Marginal Revenue Product of Labor (MRPL): MRPL is the additional revenue a firm earns by employing one more unit of labor. ‖ ∻Answer∻ ⚹ (A) the additional revenue a firm earns if it uses one more unit of labor. ⚹ ∻Key Concept∻ ⚹ Marginal Revenue Product of Labor (MRPL) ⚹ ∻Explanation∻ ⚹ MRPL represents the extra revenue generated from the use of an additional unit of labor, holding other factors constant. It is a measure of the value added by the last worker hired. ⚹◊What impact does an increase in labor productivity have on the marginal revenue product of labor in a⍭ Generate me a similar question◊

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