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The marginal product of a factor shows how much an additional unit of a factor adds to...

User Artistan
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Answer:

a company's total revenue during a certain period.

Step-by-step explanation:

The marginal product increases the company's revenue because it increases the company's output. An increase in output should equal an increase in revenue.

The formula for calculating marginal revenue product is:

marginal revenue product = marginal product times marginal revenue

MRP = MP × MR

If the company is working under perfect competition then marginal revenue = price, so the formula changes to:

MRP = MP x P

This formula is usually applied to labor, although it should work for land and capital also.

User Tri Dawn
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