Marginal revenue product is defined as
A)the total revenue generated by inputs
B)the additional output produced by one additional unit of a resource, other things constant
C)the marginal revenue from each unit of output
D)the total revenue divided by the number of resources employed
E)the additional revenue generated by one additional unit of a resource, other things constant

Question

Quizplus · Accepted Answer

Marginal revenue product (MRP) is the additional revenue generated by one additional unit of a resource (such as labor), other things constant. It is calculated by multiplying the marginal product (MP) of the resource (which is the additional output produced by one additional unit of the resource, other things constant) by the marginal revenue (MR) of the output that the resource helps to produce. MRP = MP * MR.

Marginal Revenue Product Is Defined as