What is the difference between labor \u02b9 s marginal product and marginal revenue

What is the difference between labor ʹ s marginal

This preview shows page 3 - 4 out of 4 pages.

9) What is the difference between laborʹs marginal product and marginal revenue product? A) The marginal product of labor is the increase in output as a result of hiring an additionalworker while the marginal revenue product of labor is the increase in profit as a result ofhiring an additional worker.B) Laborʹs marginal product is a measure of laborʹs productivity while laborʹs marginal revenueproduct is a measure of laborʹs ability to sell the firmʹs products.C) The marginal revenue product of labor is the dollar value of hiring an additional workerwhile the marginal product of labor is the increase in the firmʹs physical output as a result ofhiring an additional worker.D) The marginal product of labor is the additional laborʹs contribution to the firmʹs total outputwhile the marginal revenue product is the additional laborʹs contribution to the firmʹs totalsales revenue.Answer: D9)Diff: 2Page Ref: 546-547/546-547Topic: The Demand for LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Analytic Skills3
Background image
10) What is the difference between a firmʹs marginal revenue and its marginal revenue product? 10)Diff: 2Page Ref: 546-547/546-547Topic: The Demand for LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Reflective ThinkingFigure 17-1Figure 17-1 shows the marginal revenue product for Daleʹs Hand-Sewn Doilies, a producer of linen doilies. 11)Refer to Figure 17-1.If the wage rate is $40, how many workers should Dale hire? 11)Diff: 1Page Ref: 547/547Topic: The Demand for LaborLearning Outcome: Micro 17: Explain the effects of the factors of production, factor demand, and factorsupply and labor in factor marketsAACSB: Analytic Skills 4
Background image

You've reached the end of your free preview.

Want to read all 4 pages?

  • Spring '11
  • Lee
  • Economics, AACSB, marginal revenue product

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes