The marginal revenue product of labour (MRPN)is

Question

Quizplus · Accepted Answer

The marginal revenue product of labour (MRPN) is the amount of benefit of employing an additional worker in terms of the extra output produced. It is not necessary that the MRPN is greater than the wage rate, as it depends on the demand for labor in the market. Therefore, option A can be ruled out. Option B may be true in some cases, but it is not a necessary condition. Option C is inaccurate as it considers total value of output produced, but MRPN is concerned with the change in output resulting from the employment of an additional worker. Therefore, option D is the best choice.

The Marginal Revenue Product of Labour (MRPN)is