The formula for marginal revenue product of labor (MRPL) is calculated by multiplying the marginal product of labor (MPL) by the marginal revenue (MR) generated by each unit of output.
MRPL = MPL * MR
Where:
- MPL is the change in output resulting from employing an additional unit of labor.
- MR is the change in total revenue resulting from selling an additional unit of output.
Essentially, the MRPL measures the additional revenue a firm earns by employing an additional unit of labor.
What is the formula marginal Revenue product of labor
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