The change in total revenue associated with one additional unit of input is referred to as
A)Elasticity of labor supply.
B)Cost efficiency.
C)MPP.
D)MRP.

Question

Quizplus · Accepted Answer

The change in total revenue associated with one additional unit of input is referred to as Marginal Revenue Product (MRP). MRP measures the additional revenue generated from the use of an additional unit of input, such as labor. It is calculated by multiplying the marginal product of labor (MPL) by the price of the output (P). MRP helps firms determine the optimal level of input use in order to maximize profits.

The Change in Total Revenue Associated with One Additional Unit