The Marginal Revenue Product of Labor Is Equal to

question 126

Multiple Choice

The marginal revenue product of labor is equal to

• A) The marginal physical product multiplied by the marginal revenue of the output.
• B) The change in the quantity of labor divided by the change in total revenue.
• C) The change in total output divided by the change in the quantity of labor.
• D) The percentage change in total revenue divided by the percentage change in the quantity of labor. MRP is equal to price times MPP. Price will be equal to the marginal revenue.

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Definitions:

Implicit Marginal Tax Rate

The rate at which additional income is taxed, including the loss of government benefits or subsidies as income rises.

Food Stamp Benefits

Government-provided assistance to individuals and families with low income to help them afford groceries, officially known as the Supplemental Nutrition Assistance Program (SNAP).

Medicaid Benefits

The range of healthcare services covered by Medicaid, a government program that assists with medical costs for individuals with limited income and resources.

Poverty Incidence

The frequency or rate at which individuals or households fall below the poverty line, measuring the spread of poverty in a population.