Asked by
Shunquala Robinson
on Nov 06, 2024
Verified
Where L represents labor and X represents output, MPL x PX is the value of labor's marginal product while the wage rate is the
A) value of labor's marginal revenue.
B) cost of a marginal unit of labor.
C) marginal cost of a unit of output.
D) marginal revenue of a unit of output.
Wage Rate
The amount of compensation paid to an employee by an employer for a unit of time worked, which can be expressed per hour, day, or other time unit.
Marginal Product
The additional output resulting from the use of one more unit of a factor of production.
- Distinguish and interpret the idea of marginal revenue product (MRP) and its importance in employment decision-making.
Verified Answer
EN
Learning Objectives
- Distinguish and interpret the idea of marginal revenue product (MRP) and its importance in employment decision-making.