Hey there! Sign in to join this conversationNew here? Join for free
Turn on thread page Beta
    • Thread Starter
    Offline

    2
    ReputationRep:
    Okay, so MRP of labour equals
    MPP multiplied by price
    or MPP multiplied by MR
    But what is price? Is it the price of the product that the worker is producing?
    Is MR the addition to total revenue this worker makes?
    Offline

    17
    ReputationRep:
    MPP x MR = M2PPR
    Offline

    3
    ReputationRep:
    (Original post by BrownieLover)
    Okay, so MRP of labour equals
    MPP multiplied by price
    or MPP multiplied by MR
    But what is price? Is it the price of the product that the worker is producing?
    Is MR the addition to total revenue this worker makes?
    It is the price of the product because the price that the product is sold for is the marginal revenue earned by the firm from selling the last unit.
 
 
 
Reply
Submit reply
Turn on thread page Beta
Updated: May 15, 2016
Poll
“Yanny” or “Laurel”

The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

Write a reply...
Reply
Hide
Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.