What is the difference between labor's marginal product and marginal revenue product?
A)The marginal product of labor is the increase in output as a result of hiring an additional worker while the marginal revenue product of labor is the increase in profit as a result of hiring an additional worker.
B)The marginal revenue product of labor is the dollar value of hiring an additional worker while the marginal product of labor is the increase in the firm's physical output as a result of hiring an additional worker.
C)The marginal product of labor is the additional labor's contribution to the firm's total output while the marginal revenue product is the additional labor's contribution to the firm's total sales revenue.
D)Labor's marginal product is a measure of labor's productivity while labor's marginal revenue product is a measure of labor's ability to sell the firm's products.

Question

Quizplus · Accepted Answer

The marginal product of labor measures the additional output produced by hiring one additional unit of labor while the marginal revenue product of labor measures the change in the firm's total revenue resulting from hiring one additional unit of labor. In other words, the marginal product of labor measures the physical contribution of labor to output while the marginal revenue product of labor measures the revenue contribution of labor to sales.

What Is the Difference Between Labor's Marginal Product and Marginal