The added output for which one additional input of labor is responsible is its (LO3) a) marginal revenue product b) marginal physical product c) average revenue product d) average physical product

To choose the correct answer, we must understand the definitions of the given terms: marginal revenue product, marginal physical product, average revenue product, and average physical product. 1. Marginal Revenue Product (MRP): It is the additional revenue generated by employing one extra unit of input (in this case, labor). It can be calculated by multiplying the marginal physical product by the output price. MRP shows the contribution of the additional labor input to the overall revenue of a firm. 2. Marginal Physical Product (MPP): It is the additional output produced by adding one extra unit of input (labor in this case). It measures the change in total output quantity as a result of employing one more unit of labor. 3. Average Revenue Product (ARP): It is the total revenue generated per unit of labor divided by the total units of labor employed. It reflects the average revenue generated by each unit of labor input. 4. Average Physical Product (APP): It is the total output produced divided by the total units of labor employed. It measures the average output per unit of labor input. By understanding each of these terms, we can now determine which option best matches the scenario described in the problem statement.

Since the exercise is asking for the added output produced by one additional input of labor, it is clear that we are looking for a term that reflects the additional output resulting from a change in labor input. By analyzing the definitions of each term, it is evident that the correct answer is: b) Marginal Physical Product This is because the marginal physical product (MPP) represents the additional output produced by adding one extra unit of input (labor in this case). The other three terms are related to revenue, averages, or a combination of both, which do not properly describe the added output for one additional input of labor.