Which of the following is characteristic of the marginal revenue product schedule for a resource?

Question

Quizplus · Accepted Answer

All of these are true. The marginal revenue product schedule for a resource measures the change in total revenue resulting from employing an additional unit of the resource. It is determined by multiplying the marginal product of the resource by the marginal revenue of the good produced. It also approximates the firm's demand curve for the resource because a firm will demand a resource as long as the marginal revenue product (MRP) of the resource is greater than or equal to the resource's price. Therefore, the MRP curve for a resource is downward sloping, just like a demand curve.

Which of the Following Is Characteristic of the Marginal Revenue