What is the formula marginal Revenue product of labor
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.
The formula for marginal revenue product of labor (MRPL) is given by:
MRPL = Marginal Product of Labor (MPL) x Marginal Revenue (MR)
MPL refers to the additional output produced by employing one more unit of labor, while MR represents the additional revenue generated by selling one more unit of output.
In summary, the formula for MRPL is:
MRPL = MPL x MR