Average revenue product of an input is:
A)equal to output price times average product of the input.
B)equal to output price times marginal product of the input.
C)the firm's demand function for that input.
D)below MRP if MRP is always downward sloping.

Question

Quizplus · Accepted Answer

Average Revenue Product (ARP) of an input is calculated by multiplying the output price by the average product of that input. This measures the revenue per unit of input.

Average Revenue Product of an Input Is