Practice mode Income Inequality

Using L for labour and X for the product, what is the formula for the marginal revenue product of labour?

Correct answer A. (MPL) (PX)

Explanation

MRP of labour is the extra output one more worker produces multiplied by the price each unit sells for. For a price-taking firm it is MPL times PX, not a ratio.

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Using L for labour and X for the product, what is the formula for the marginal revenue product of labour?

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Using L for labour and X for the product, what is the formula for the marginal revenue product of labour?

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