The increase in total revenue due to increasing the amount of labor employed by one unit is called the
A) Marginal Product.
B) Marginal Revenue Product.
C) Average Revenue Product.
D) Total Revenue Product.

Question

Quizplus · Accepted Answer

The increase in total revenue due to increasing the amount of labor employed by one unit is the Marginal Revenue Product (MRP), which is the additional revenue generated by one additional unit of labor. Marginal Product (MP) is the additional output generated by one additional unit of labor, and Average Revenue Product (ARP) is total revenue divided by the amount of labor employed. Total Revenue Product is not a commonly used term in economics.

The Increase in Total Revenue Due to Increasing the Amount