Which of the following equations defines marginal revenue product?
A)MRP = P times Q.
B)MRP = total cost.
C)MRP = total revenue minus total cost.
D)MRP = MPP times price of the product.

Question

Quizplus · Accepted Answer

Marginal revenue product (MRP) is defined as the additional revenue generated from hiring one additional unit of input (such as labor or capital). It is calculated by multiplying the marginal physical product (MPP) by the price of the product. Therefore, the equation that defines marginal revenue product is MRP = MPP x price of the product.

Which of the Following Equations Defines Marginal Revenue Product