The formula for the marginal revenue product of labor (L is for labor, X is the output) is A) MP_L/P_X. B) P_X/MP_L. C) (MP_L)(MR_X). D) MP_L + P_X.

Name: The formula for the marginal revenue product of labor (L is for labor, X is the output) is A) MP L /P X . B) P X /MP L . C) (MP L )(MR X ). D) MP L + P X .
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Question

Quizplus · Accepted Answer

The marginal revenue product of labor is calculated by multiplying the marginal product of labor (MPL) by the marginal revenue of output (MR), which is represented in choice C as (MP_L)(MR_X).

The Formula for the Marginal Revenue Product of Labor (L