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:

Accrued Wages

Wages that have been earned by employees but have not yet been paid by the employer.

Accrued Revenues

Income that has been earned but not yet received; recorded to recognize revenue prior to cash receipt.

Depreciation Expense

The allocated expense of a tangible asset over its useful life, reflecting the use and wear and tear of the asset.

Income Tax Rate

The proportion or percentage of income that is paid as tax to the government, varying according to income levels or earnings.