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

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

Accepted Answer

∻Solution∻ ‖ a ⋮ Definition of Marginal Revenue Product of Labor (MRPL): The marginal revenue product of labor (MRPL) is defined as the additional revenue a firm earns if it uses 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∻ ⚹ The MRPL measures the additional revenue generated by employing an additional unit of labor. It is crucial for firms in determining the optimal number of workers to hire, as it helps in comparing the additional revenue generated to the additional cost of labor. ⚹◊How does the marginal revenue product of labor (MRPL) impact a firm's decision to hire additional workers?⍭ Generate me a similar question◊

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