Marginal revenue product measures the:
amount by which the extra production of one more worker increases a firm's total revenue.
decline in product price that a firm must accept to sell the extra output of one more worker.
increase in total resource cost resulting from the hire of one extra unit of a resource.
increase in total revenue resulting from the production of one more unit of a product.
29. Marginal product is:
the output of the least skilled worker.
the amount an additional worker adds to the firm's total output.
a worker's output multiplied by the price at which each unit can be sold.
the amount any given worker contributes to the firm's total revenue.
30. Capital and labor:
are always complementary.
are always substitutable.
may be either complementary or substitutable.
are both normal inputs.
<br>The marginal revenue product of labor is defined to be the additional revenue that results from the use of an additional unit of labor. In a similar manner, the marginal factor cost of labor is defined to be the additional cost associated with the use of an additional unit of labor. (Your textbook defines this using the somewhat less conventional term of ...
The marginal revenue product of labor is overviewed.