Question

The marginal revenue product of labour is defined​ as: A. The change in the marginal product...

The marginal revenue product of labour is defined​ as:

A.

The change in the marginal product of labour divided by the change in labour

B.

Marginal product of labour multiplied by the price of the good

C.

Marginal product of labour multiplied by the wage

D.

The change in the marginal product of labour divided by the change in quantity

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Answer #1

Answer

Option

B.

Marginal product of labour multiplied by the price of the good

Marginal revenue product is a change in total revenue because of one extra unit of input employed. It means the revenue generated by the extra input.

Marginal product is the output generated by one extra unit of input

revenue =output *price

marginal revenue product =marginal product *price.

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