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soldier1979 [14.2K]
3 years ago
10

The marginal revenue product of capital is _______.

Business
1 answer:
Jlenok [28]3 years ago
7 0

Answer:

D.  the change in the firm's revenue as a result of employing one more unit of capital, such as a machine.

Explanation:

Marginal Revenue Product (MRP) of a factor (here capital) is the change in firm's revenue, due to employing one additional unit of that factor.

It is calculated as : product of Marginal (additional) product from the factor (capital) , with marginal (additional) revenue of a product

MRPS (k) = MPP (k) x MR

Eg : If MPP of capital (k) = 5 , MR = 10 .

So, MRP (k) = 10 x 5 = 50

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