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Question
Microeconomics
Posted 5 months ago

Which of the following best describes how to calculate the marginal revenue product of labor for a firm?

Choose 1 answer:
A Marginal revenue product of labor (MRPL)= marginal ] P\left(M R P_{L}\right)=\frac{\text { marginal ] }}{\mathrm{P} \text {. }}
(B) Marginal revenue product of labor (MRPL)= Marginal  Marginal \left(M R P_{L}\right)=\frac{\text { Marginal }}{\text { Marginal }}.
(C) Marginal revenue product of labor (MRPL)=\left(M R P_{L}\right)= Marginal I
(D) Marginal revenue product of labor (MRPL)=\left(M R P_{L}\right)= marginal r\mathrm{r}
(E) Marginal revenue product of labor (MRPL)=PLPK\left(M R P_{L}\right)=\frac{P_{L}}{P_{K}}
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Answer from Sia
Posted 5 months ago
Solution
a
Definition of Marginal Revenue Product of Labor (MRPL): The Marginal Revenue Product of Labor (MRPL) is calculated as the additional revenue generated by employing one more unit of labor
b
Formula for MRPL: The correct formula for MRPL is given by the product of the Marginal Product of Labor (MPL) and the Marginal Revenue (MR). Mathematically, it is expressed as: MRPL=MPL×MR MRPL = MPL \times MR
Answer
The correct answer is C: Marginal revenue product of labor (MRPL) = Marginal Product of Labor * Marginal Revenue
Key Concept
Marginal Revenue Product of Labor (MRPL)
Explanation
The MRPL is calculated by multiplying the Marginal Product of Labor (MPL) by the Marginal Revenue (MR). This represents the additional revenue a firm earns from hiring an additional unit of labor.

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