For a firm selling its product in an imperfectly competitive market, the marginal revenue product of labor can be found by
A)adding marginal product to total product as one more unit of labor is employed.
B)adding marginal revenue to total product as one more unit of labor is employed.
C)multiplying marginal product by product price.
D)multiplying marginal product by marginal revenue.

Question

Quizplus · Accepted Answer

The marginal revenue product of labor is calculated by multiplying the marginal product of labor (the additional output produced by an additional unit of labor) by the marginal revenue (the additional revenue generated from selling that additional output). This reflects the additional revenue a firm earns by employing one more unit of labor, taking into account that in imperfectly competitive markets, selling more output typically requires lowering the price.

For a Firm Selling Its Product in an Imperfectly Competitive