Which of the following describes a difference between the marginal product of labour and the marginal revenue product of labour?
A) The marginal product of labour declines as each additional worker is hired because of the law of diminishing returns. The marginal revenue product of labour declines as each additional worker is hired because of diseconomies of scale.
B) The marginal product of labour declines as each additional worker is hired because of the law of diminishing returns. The marginal revenue product increases as each additional worker is hired because of increases in the productivity of labour.
C) The marginal product of labour is inelastic. The marginal revenue product of labour is elastic.
D) The marginal product of labour measures the change in output as additional workers are hired. The marginal revenue product measures the change in revenue as additional workers are hired.

Question

Quizplus · Accepted Answer

The marginal product of labour measures the change in output as each additional worker is hired, while the marginal revenue product of labour measures the change in revenue resulting from the output produced by each additional worker. Therefore, D is the correct answer. A, B, and C are incorrect choices because they do not accurately describe the difference between these two concepts.

Which of the Following Describes a Difference Between the Marginal