MRP stands for Marginal Revenue Product, which refers to the extra revenue that a firm earns by hiring an additional unit of labor. It is the demand curve for labor for an individual firm because it shows how much a firm is willing to pay for an additional unit of labor based on the extra revenue it generates.

Solved

The MRP Is

Question 136

Multiple Choice

The MRP is

A) the supply curve of labor for an individual firm.
B) the demand curve for labor for an individual firm.
C) the demand curve for labor for the entire market.
D) the supply curve of labor for the entire market.

Correct Answer: