Asked by Scarlet Melliz on Jun 12, 2024
Verified
What is a firm's MRP?
MRP
Marginal Revenue Product; the additional revenue generated by employing one more unit of a factor, like labor or capital.
- Identify the prerequisites for maximizing profit in companies related to their use of inputs.
Verified Answer
AA
Arlene A. LaquianJun 18, 2024
Final Answer :
A firm's MRP is the change in a firm's total revenue when it employs 1 additional unit of a resource. It is equal to the change in total revenue divided by the unit change in resource quantity.
Learning Objectives
- Identify the prerequisites for maximizing profit in companies related to their use of inputs.