Define the concept of marginal revenue product

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Define the concept of marginal revenue product (MRP), or value of the marginal product as defined on p. 377 of the textbook; then relate that to the marginal cost of the labor input factor. Explain why a competitive, profit-maximizing firm hires workers up to the point at which MRP and the marginal cost (i.e., wage rate) are equal.

Reference no: EM131160546

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