Asked by Chris Miller on Apr 24, 2024

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The marginal revenue product can be expressed as the:

A) additional revenue received from selling one more unit of product.
B) increment to revenue received from one additional unit of input hired.
C) marginal physical product of an input times the average revenue received from the sale of the product.
D) average physical product of the input times the marginal revenue received from the sale of the final product.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, such as labor or capital.

Additional Revenue

The extra or incremental income received from selling one more unit of a product or service.

Input Hired

Resources or factors of production, such as labor, raw materials, and capital, employed in the creation of goods and services.

  • Acquire knowledge about the influence of the marginal revenue product of labor on firms' labor employment decisions.
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Zybrea KnightMay 02, 2024
Final Answer :
B
Explanation :
The marginal revenue product (MRP) is the additional revenue generated by one more unit of input hired. Therefore, the best choice is B. Option A is the definition of marginal revenue, not MRP. Option C is incorrect as it combines the marginal physical product with average revenue instead of marginal revenue. Option D is incorrect as it multiplies the average physical product with marginal revenue instead of marginal revenue product.