[amp_mcq option1=”MRP = MRP \u00c3\u0097 MR” option2=”MRP = MPP \u00c3\u0097 MR” option3=”MPP = MRP + MR” option4=”MRP = MPP + MR” correct=”option2″]<\/p>\n
The correct answer is: B. MRP = MPP \u00c3\u0097 MR<\/strong><\/p>\n Marginal revenue product (MRP) is the additional revenue that a firm earns by employing one more unit of labor. It is calculated by multiplying the marginal physical product (MPP) of labor by the marginal revenue (MR).<\/p>\n The MPP of labor is the additional output that a firm produces by employing one more unit of labor. It is calculated by dividing the change in output by the change in labor input.<\/p>\n The MR is the additional revenue that a firm earns by selling one more unit of output. It is calculated by dividing the change in revenue by the change in output.<\/p>\n Therefore, the MRP of labor is equal to the MPP of labor multiplied by the MR.<\/p>\n Option A is incorrect because it multiplies the MRP by itself. This would make the MRP larger than it actually is.<\/p>\n Option C is incorrect because it adds the MPP and the MR. This would not give the correct value for the MRP.<\/p>\n Option D is incorrect because it adds the MPP and the MR, and then multiplies the sum by the MR. This would make the MRP larger than it actually is.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”MRP = MRP \u00c3\u0097 MR” option2=”MRP = MPP \u00c3\u0097 MR” option3=”MPP = MRP + MR” option4=”MRP = MPP + MR” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-52551","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n