In the competitive output market for good Q, the marginal revenue product for an input X can be expressed as: A) MP_X / TR_Q. B) MP_Q MR_X. C) AP_X MR_Q. D) MP_X ∗ P_Q.

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) of an input in the production of a good is the additional revenue a firm earns by employing one more unit of that input, holding all other factors constant. It can be calculated as the marginal product of the input (MPS) times the price of the output (PS), reflecting the additional output produced by the last unit of input multiplied by the market price of the output. The symbols in the choices seem to be placeholders or errors, but the correct formula conceptually matches choice D, where MPS (marginal product of the input X) is multiplied by PS (price of the output Q), indicating the additional revenue generated from selling the extra output produced by the additional input.

In the Competitive Output Market for Good Q, the Marginal