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28 January, 09:43

For a firm that is a price taker in the market for labor, the marginal revenue product of labor equals

a. the marginal product of labor multiplied by the product price.

b. marginal product of labor divided by the wage rate.

c. marginal product of labor multiplied by the wage rate.

d. marginal product of labor multiplied by the marginal cost of production.

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  1. 28 January, 12:20
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    Answer: Option (a) is correct.

    Explanation:

    Correct option: The marginal product of labor multiplied by the product price.

    It represents the additional revenue generated by adding one more unit of labor employed.

    Also, we can say that the marginal revenue product of labor equals the value of the marginal product of labor.

    Marginal revenue product of labor is equal to the marginal product of labor times the product price.
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