Question

g Marginal revenue product measures the rev: 06_21_2018 Multiple Choice 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.

Answer 1

Answer: The correct answer is the first statement.

Explanation: Marginal revenue product measures the amount by wich the extra production of one more worker increases a firm's total revenue.

It is an economic term used to describe the change in total income that results from a unit change of one type of input variable. There are many types of input variables that you can change, such as adding an employee or a new machine.