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

question 75

Multiple Choice

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

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

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Definitions:

U.S.GAAP

United States Generally Accepted Accounting Principles, the standard framework of guidelines for financial accounting used in the U.S.

Temporal Method

An accounting method for converting foreign currency transactions based on exchange rates at the time the transactions are made.

Translation Exchange Rates

The rates used to convert the financial statements of a company into the currency of a different country for reporting purposes.

Historical Rate

Refers to the exchange rate between two currencies at a past date, useful for historical financial analysis.