Which of the following best describes marginal revenue product?
A) It is the value of output produced by hiring an additional worker.
B) It represents the additional cost associated with expanding the workforce.
C) It is the price at which the product is allowed to be sold in the retail market.
D) It is the total revenue generated times the labor cost.

Question

Quizplus · Accepted Answer

Marginal revenue product is the additional revenue generated by hiring an additional worker, which is calculated by multiplying the marginal product of labor (the additional output produced by an additional unit of labor) by the marginal revenue (the additional revenue generated by selling one more unit of output).

Which of the Following Best Describes Marginal Revenue Product