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The Marginal Revenue Product of Labor Is

Question 21

Multiple Choice

The marginal revenue product of labor is:


A) how much labor can be purchased with the revenue from the sale of one more unit of the good.
B) how much does the marginal revenue change when you add more labor.
C) the same as the marginal revenue product of capital in equilibrium.
D) determined by the wage rate.
E) the contribution to total revenue made by the marginal laborer.

Correct Answer:

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