The formula (MP_L)(MR_X), where L is for labor and X is the output, is for A) the marginal product of labor. B) the marginal revenue from labor. C) the marginal revenue product of labor. D) total revenue of labor.

Question

Quizplus · Accepted Answer

The formula represents the marginal revenue product of labor, which is calculated by multiplying the marginal product of labor (MPL) by the marginal revenue (MR). This formula shows how the additional output produced by one more unit of labor (MPL) contributes to the total revenue when sold (MR * MPL).

The Formula (MPL)(MRX), Where L Is for Labor and X

The Formula (MP_L)(MR_X), Where L Is for Labor and X