Marginal revenue product is defined as _____
A)the total revenue generated by resources.
B)the additional output produced by one additional unit of a resource, other things constant.
C)the marginal revenue from each unit of output.
D)the total revenue divided by the number of resources employed.
E)the additional revenue generated by one additional unit of a resource, other things constant.

Question

Quizplus · Accepted Answer

Marginal revenue product is the additional revenue generated by one additional unit of a resource, while holding other factors constant. It is calculated by multiplying the marginal product of the resource by the marginal revenue of the product. Therefore, choice E is the best answer.

Marginal Revenue Product Is Defined as _____