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Question at position 6 The marginal revenue product of labor is the increase in the price of labor when the firm employs an additional unit of laborincrease in the average product of labor when the firm employs an additional unit of laborproduct price times the wage rateadditional revenue a firm earns when it employs an additional unit of labormarginal revenue plus product price
Options
A.increase in the price of labor when the firm employs an additional unit of labor
B.increase in the average product of labor when the firm employs an additional unit of labor
C.product price times the wage rate
D.additional revenue a firm earns when it employs an additional unit of labor
E.marginal revenue plus product price
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Step-by-Step Analysis
Question restatement: The prompt asks about the marginal revenue product of labor and provides five theoretical options to choose from.
Option 1: 'increase in the price of labor when the firm employs an additional unit of labor' — This is misinterpreting MRPL as a change in input price itself. The marginal revenue product of labor is not about the wage rate or the price of labor increasing; it measures the additional revenue generated by one more unit of la......Login to view full explanationLog in for full answers
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