Marginal revenue product is the:
A) change in total output resulting from a unit change in the quantity of a variable input.
B) change in total revenue resulting from a unit change in the quantity of a variable input.
C) change in total cost resulting from a unit change in the quantity of a variable input.
D) ratio of total revenue to the quantity of a variable input employed.

Question

Quizplus · Accepted Answer

Marginal revenue product is the change in total revenue resulting from a unit change in the quantity of a variable input. It helps firms determine the optimal amount of inputs to use in production.

Marginal Revenue Product Is The