What is meant by marginal revenue product?
Marginal revenue product (MRP) is the marginal revenue created by using one additional unit of resource. MRP is used to make critical decisions on business production and determine the optimal level of a resource. The MRP assumes that the expenditures on other factors remain unchanged.
What is meant by marginal productivity theory of wages?
As applied to wages, the marginal-productivity theory holds that employers will tend to hire workers of a particular type until the contribution that the last (marginal) worker makes to the total value of the product is equal to the extra cost incurred by the hiring of one more worker.
What is marginal revenue product example?
For example, if an accounting firm sells accountant time as a service and each hired accountant is typically billed to clients 1500 hours per year, this quantity would be the marginal product of hiring an additional accountant. The marginal revenue product.
What does MFC stand for in economics?
In microeconomics, the marginal factor cost (MFC) is the increment to total costs paid for a factor of production resulting from a one-unit increase in the amount of the factor employed. It is expressed in currency units per incremental unit of a factor of production (input), such as labor, per unit of time.
What is the difference between a firm’s marginal revenue and its marginal revenue product?
Marginal revenue is the change in sales revenue from selling one more unit of output while marginal revenue product is the change in total revenue from hiring one more worker.
What is the difference between marginal product and marginal revenue product?
Marginal physical product indicates how much total production changes by employing another unit of variable input. Marginal revenue product, however, indicates how much total revenue changes by employing another unit of variable input. As marginal product decreases so too does marginal revenue product.
What is MFC in law?
MFC means “medically fragile children”. Medically fragile children have a health impairment that requires long-term, intensive, specialized services on a daily basis, who have been found eligible for MFC services by the Department.
What is the full form of MFC?
MFC Full Form
| Full Form | Category | Term |
|---|---|---|
| Masters of Finance and Control | Educational Degree | MFC |
| Master of Finance and Control | Educational Degree | MFC |
| Multi Function Center | Networking | MFC |
| Microsoft Foundation Class | Softwares | MFC |
What is meant by wage determination?
noun. the process of setting wage rates or establishing wage structures in particular situations.
How does economic theory explain wage determination?
According to economic theory, workers’ wages are equal to the marginal revenue product of their labor. If one employee is very productive he or she will have a high marginal revenue product. In reality, wages are determined not only by one’s productivity, but also by seniority, networking, ambition, and luck.