Asked by Samuel Libertus on Jul 06, 2024
Verified
The additional output that one additional input of labor is responsible for is its
A) marginal revenue product.
B) marginal physical product.
C) average revenue product.
D) average physical product.
Marginal Physical Product
The additional output that can be produced by adding one more unit of a specific input, while holding other inputs constant.
Additional Output
The extra amount of production generated as a result of increasing inputs or improving efficiency.
- Become familiar with the interplay between marginal revenue product (MRP) and the decision-making process for expanding resources.
Verified Answer
KS
Kaitlyn ShieldsJul 10, 2024
Final Answer :
B
Explanation :
The additional output that one additional input of labor is responsible for is the marginal physical product. This is because the marginal physical product measures the additional output that is gained by using one more unit of input (labor in this case). Marginal revenue product (A) measures the additional revenue gained from using one more unit of input, while average revenue product (C) measures the average revenue earned per unit of input. Average physical product (D) measures the average output produced per unit of input, but it does not focus specifically on the additional output gained from using one more unit of input.
Learning Objectives
- Become familiar with the interplay between marginal revenue product (MRP) and the decision-making process for expanding resources.