_____ is the additional revenue from an additional unit of labor, holding the amount of physical capital and other inputs fixed.
A) The marginal revenue product of labor
B) The marginal physical product of labor
C) Total revenue
D) Total product

Question

Quizplus · Accepted Answer

The marginal revenue product of labor refers to the additional revenue a firm earns by employing one more unit of labor, with the amount of physical capital and other inputs held constant. This concept is crucial in understanding how firms decide on the amount of labor to employ.

_____ Is the Additional Revenue from an Additional Unit of Labor