Marginal revenue product measures the increase in a. output resulting from one more unit of labor. b. total revenue resulting from one more unit of output. c. revenue per unit from one more unit of output. d. total revenue resulting from one more unit of labor.

Short Answer

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d. Total revenue resulting from one more unit of labor.

Step by step solution

01

Option a: Output resulting from one more unit of labor

This option refers to the concept of marginal product, not marginal revenue product. The marginal product of labor measures the additional output generated by employing one more unit of labor, keeping other factors such as capital, technology, and management constant.
02

Option b: Total revenue resulting from one more unit of output

This option refers to the concept of marginal revenue, not marginal revenue product. Marginal revenue is the additional revenue obtained by selling one more unit of output.
03

Option c: Revenue per unit from one more unit of output

This option does not accurately describe marginal revenue product. It seems to mix two concepts: marginal revenue and average revenue. Average revenue is the revenue generated per each unit of output sold.
04

Option d: Total revenue resulting from one more unit of labor

This option correctly describes the concept of marginal revenue product. Marginal revenue product measures the additional total revenue generated from employing one more unit of labor, holding other factors such as capital, technology, and management constant. So, the correct answer is: d. Total revenue resulting from one more unit of labor.

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