Question

g Marginal revenue product (MRP) of labor refers to the: A. amount by which a firm's total resource cost increases when it employs one more unit of labor. B. increase in total revenue resulting from the sale of an additional unit of output. C. increase in total revenue resulting from the hire of one more unit of labor. D. price at which additional units of labor can be employed in a monopsony labor market.

Answer 1

Answer:

c

Explanation:

Marginal revenue product (MRP) is the change in total revenue when one more unit of a resource is employed.

For example :

Units of labour    Revenue

1                             100

2                             200

The MRP of employing 2 units of labour = (200 - 100) / (2 -1) = 100