The marginal revenue product of labor is defined as

Question

Quizplus · Accepted Answer

The marginal revenue product of labor (MRPL) measures the additional revenue that a firm can expect to receive from hiring one more unit of labor. Therefore, the correct answer is D, which states that the MRPL is the change in the firm's revenue as a result of hiring one more worker. A is incorrect because it refers to the change in revenue as a result of selling one more unit of output, which is the marginal revenue of product, not the MRPL. B is incorrect because it refers to the change in the firm's output, which may not necessarily translate into revenue, and C is incorrect because the MRPL is not directly related to profit.

The Marginal Revenue Product of Labor Is Defined as