Question

give the definition of marginal revenue product (mrp). ans: 1) mrp=p*mpp 2) mrp=mr* mpp, 3) mrp=p*mr, 4) none of the above ​

Answer 1

Answer:

Marginal revenue product (MRP), also known as the marginal value product, is the marginal revenue created due to an addition of one unit of resource. The marginal revenue product is calculated by multiplying the marginal physical product (MPP) of the resource by the marginal revenue (MR) generated. The MRP assumes that the expenditures on other factors remain unchanged and helps determine the optimal level of a resource.

KEY TAKEAWAYS

Marginal revenue product (MRP) is the marginal revenue created by using one additional unit of resource.

MRP is used to make critical decisions on business production and determine the optimal level of a resource.

Explanation:

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