The Marginal Revenue Product of Labor Is Equal To

question 57

Multiple Choice

The marginal revenue product of labor is equal to:

• A) MP_K × MR.
• B) MP_L × MR.
• C) MP_L × W.
• D) MP_K × R.

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Definitions:

Market Rate

Market rate, or market interest rate, refers to the prevailing rate of interest that borrowers and lenders can expect to transact at, in the wider market.

Effective-interest Amortization

A method of calculating the amortized cost of a bond or loan by applying the effective interest rate to the outstanding balance.

Interest Payment

The payment made to a lender by a borrower in return for the use of borrowed money, typically represent a fixed percentage of the principal.

Book Value

The net value of a company's assets, calculated as total assets minus intangible assets (patents, goodwill) and liabilities.