The firm hires 10 additional employees which produce 500 additional parts. If the revenue increases by 150,000, what is the marginal revenue product of labor?
A) $5,000
B) $10,000
C) $15,000
D) $20,000

Question

Quizplus · Accepted Answer

The marginal revenue product of labor (MRPL) is calculated by dividing the increase in revenue by the increase in labor. Here, the increase in revenue is $150,000, and the increase in labor is 10 employees. Therefore, MRPL = $150,000 / 10 = $15,000.

The Firm Hires 10 Additional Employees Which Produce 500 Additional