Marginal revenue product measures the
A) amount by which the addition of one more worker increases a firm's total revenue.
B) decline in product price that a firm must accept to sell the extra output of one more worker.
C) increase in total resource cost resulting from the hire of one extra unit of a resource.
D) increase in total revenue resulting from the production of one more unit of a product.

Question

Quizplus · Accepted Answer

Marginal revenue product is the change in a firm's total revenue resulting from hiring one additional unit of a resource (in this case, a worker). Therefore, it measures the amount by which the addition of one more worker increases a firm's total revenue.

Marginal Revenue Product Measures the