Chapter 10 Flashcards
1
Q
derived demand
A
The demand for resources (inputs) that is dependent on the demand for the outputs those resources can be used to produce.
2
Q
productivity of an input
A
The amount of output produced per unit of that input.
3
Q
marginal product of labor (MPL)
A
The additional output produced by 1 additional uint of labor.
4
Q
marginal revenue product (MRP)
A
The additional revenue a firm earns by employing 1 additional unit of an input.
MRP=MPLxP
