Which of the Following Best Describes Marginal Revenue Product (MRP)

question 146

Multiple Choice

Which of the following best describes marginal revenue product (MRP) ?

• A) MRP is the level of total revenue generated by total employment of labor and capital.
• B) MRP is the change in total revenue caused by a one-unit increase in output.
• C) MRP is the change in total revenue caused by a one-unit increase in a variable input such as labor.
• D) MRP is total revenue divided by the total quantity of a variable input used.

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Definitions:

Contract Price

The total monetary amount that is agreed upon by the parties involved for the performance of contractual obligations.

Statute of Limitations

The law that sets the maximum period one can wait before filing a lawsuit, depending on the type of case or claim.

Nonconforming Goods

Products delivered under a sales contract that fail to meet the specifications, quality, or quantity required by the agreement.

Remedy

The means by which a violation of rights is compensated or the enforcement of rights is achieved, generally through legal proceedings.