The marginal revenue product is

Question

Quizplus · Accepted Answer

Marginal revenue product (MRP) is the additional revenue generated when one more unit of labor or other variable input is added while holding all other inputs constant. It represents the change in total revenue resulting from a one-unit change in variable input. Option A is incorrect because it describes marginal product of labor, which is the change in total output resulting from a one-unit change in labor input. Option B is incorrect because it combines the concepts of marginal product and marginal revenue product. Option D is incorrect because it describes the change in marginal revenue, not the marginal revenue product.

The Marginal Revenue Product Is