The marginal revenue product schedule is
A)the same whether the firm is selling in a purely competitive or imperfectly competitive market.
B)the firm's resource demand schedule.
C)the firm's resource supply schedule.
D)upsloping.

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) schedule represents the additional revenue a firm earns from employing one more unit of a resource, making it the firm's resource demand schedule. It is based on the principle that firms will continue to hire additional resources as long as the cost of hiring the resource (the wage rate, for example) is less than or equal to the additional revenue generated by that resource.

The Marginal Revenue Product Schedule Is