The marginal revenue product of labor is a short-run concept because:
A) cost is fixed.
B) all inputs except labor are fixed.
C) cost is variable.
D) all inputs except labor are variable.

Question

Quizplus · Accepted Answer

The marginal revenue product of labor is considered a short-run concept because in the short run, all inputs except labor are fixed. This means that firms can only adjust the amount of labor they use to respond to changes in production needs, while other factors like capital are held constant.

The Marginal Revenue Product of Labor Is a Short-Run Concept