The marginal revenue product of labour is defined as
A) the change in the firm's revenue as a result of selling one more unit of output.
B) the change in the firm's output as a result of hiring one more worker.
C) the change in the firm's profit as a result of hiring one more worker.
D) the change in the firm's revenue as a result of hiring one more worker.

Question

Quizplus · Accepted Answer

The marginal revenue product of labour is the change in the firm's revenue as a result of hiring one more worker. It measures the additional revenue that a firm receives from hiring one more worker, taking into account the effect of the additional worker on the firm's output and revenue. Therefore, choice D is the best answer.

The Marginal Revenue Product of Labour Is Defined as