What Is the Difference Between Labor's Marginal Product and Marginal

question 271

Multiple Choice

What is the difference between labor's marginal product and marginal revenue product?

• A)The marginal product of labor is the increase in output as a result of hiring an additional worker while the marginal revenue product of labor is the increase in profit as a result of hiring an additional worker.
• B)The marginal revenue product of labor is the dollar value of hiring an additional worker while the marginal product of labor is the increase in the firm's physical output as a result of hiring an additional worker.
• C)The marginal product of labor is the additional labor's contribution to the firm's total output while the marginal revenue product is the additional labor's contribution to the firm's total sales revenue.
• D)Labor's marginal product is a measure of labor's productivity while labor's marginal revenue product is a measure of labor's ability to sell the firm's products.

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Definitions:

Bargaining Unit

A collection of workers who share common interests and are represented by a single union in negotiations with their employer.

NLRB

The National Labor Relations Board, a federal agency overseeing the enforcement of U.S. labor laws in relation to collective bargaining and unfair labor practices.

NLRB Certification

The official recognition by the National Labor Relations Board that a labor union is the authorized representative of a group of employees for collective bargaining purposes.

Employee Free Choice Act

Proposed U.S. legislation intended to ease the process for employees to form, join, or assist labor unions and to provide for mandatory injunctions for unfair labor practices during organizing efforts.