Asked by Alejandra Quiroz on Jul 06, 2024
Verified
The extra revenue that results from hiring another worker is
A) the marginal revenue of output.
B) the marginal revenue product of labor.
C) the average revenue of output.
D) the marginal input cost.
Marginal Revenue Product of Labor
The additional revenue generated by employing one more unit of labor, holding all other inputs constant.
Extra Revenue
Additional income generated through activities outside of a company's or individual's primary revenue stream.
Hiring Another Worker
The process of adding an additional employee to the workforce, typically in response to increased demand for a business's products or services.
- Understand the connection between the marginal revenue product (MRP) and the choice to utilize more resources.
Verified Answer
LC
LENORA COLLINJul 13, 2024
Final Answer :
B
Explanation :
The extra revenue that results from hiring another worker is referred to as the marginal revenue product of labor as it is the added amount of revenue generated by the additional unit of labor. Option A, C, and D do not accurately describe the concept of extra revenue generated by hiring another worker.
Learning Objectives
- Understand the connection between the marginal revenue product (MRP) and the choice to utilize more resources.