Marginal revenue product describes the
A)output produced by the last unit of labor employed.
B)revenue received for the last unit of output produced.
C)price a consumer paid for the last unit of output produced.
D)revenue received for the additional output produced by the last unit of labor employed.

Question

Quizplus · Accepted Answer

Marginal revenue product specifically refers to the additional revenue a firm receives from employing one more unit of labor, which is directly related to the additional output that this last unit of labor produces. It does not refer to the output itself, the revenue for the last unit of output without considering labor, or the price paid by the consumer for the last unit of output.

Marginal Revenue Product Describes the