What is the marginal revenue product of labor (MRP)? What shape does the MRP curve have? Why?
What will be an ideal response?
Marginal revenue product of labor is the marginal physical product of labor times marginal revenue of selling the good produced. It gives the additional revenue from hiring one more unit of labor. The curve slopes down because of the law of diminishing marginal product.
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What happens to the Canadian M2 money supply if there is an excess demand of 100 million euros in the foreign exchange market and the central bank intervenes to offset the excess? Assume the M2 money multiplier is 3
a. The Canadian M2 money supply falls by 300 million euros worth of Canadian dollars. b. The Canadian M2 money supply rises by 300 million euros worth of Canadian dollars. c. The Canadian M2 money supply might fall or rise. d. The Canadian M2 money supply rises by 100 million euros worth of Canadian dollars. e. The Canadian M2 money supply falls by 100 million euros worth of Canadian dollars.
Refer to the consumption schedule above. The marginal propensity to consume is represented by:
A. GF/BE
B. EF/BE
C. GE/AB
D. DE/AB