Marginal revenue product can be calculated using the formula marginal product × output price
A)only if output price is constant.
B)only if the marginal product of labor is constant.
C)only if the both marginal product of labor and the output price are constant.
D)only if the firm has market power in the labor market

Question

Quizplus · Accepted Answer

Marginal revenue product is calculated as marginal product times output price, assuming the output price is constant. If the output price varies, the calculation would need to account for these changes.

Marginal Revenue Product Can Be Calculated Using the Formula Marginal