Question

1. Which of the following relationship is correct?
(A) MR + MP = MRP
(B) (MR + 1) MP = MRP
(C) (MR + 1) (MP-1) = MRP
(D) MR X MP = MRP​

Answer 1

Answer:

(D) MR * MP = MRP

Explanation:

The marginal revenue product (MRP) of a worker is equal to the product of the marginal product of labour (MP) (the increment to output from an increment to labor used) and the marginal revenue (MR) (the increment to sales revenue from an increment to output): MRP = MP * MR.