Asked by Bulut Yasin on Apr 29, 2024
Verified
The formula (MPL) (MRX) , where L is for labor and X is the output, is for
A) the marginal product of labor.
B) the marginal revenue from labor.
C) the marginal revenue product of labor.
D) total revenue of labor.
Marginal Revenue Product
The additional revenue generated from employing one more unit of a resource or input.
Formula
A symbolic expression that defines a rule or relationship in mathematics.
Labor
The exertion of human mental and physical strength in the process of producing goods and rendering services.
- Understand the principle of marginal revenue product (MRP) and its connection to recruitment choices.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
C
Explanation :
The formula represents the marginal revenue product of labor, which is calculated by multiplying the marginal product of labor (MPL) by the marginal revenue (MR). This formula shows how the additional output produced by one more unit of labor (MPL) contributes to the total revenue when sold (MR * MPL).
Learning Objectives
- Understand the principle of marginal revenue product (MRP) and its connection to recruitment choices.