Chapter 10: Input Demand: The Labour And Land Markets Flashcards
1
Q
What is a Derived Demand?
A
It is when the demand for resources (inputs) that is dependent on the demand for the (outputs) those resources can be used to produce.
2
Q
What is Productivity of an input?
A
The amount of output produced per unit of that input.
3
Q
What is Marginal Product of Labour (MPL)?
A
It is the additional output produced by 1 additional unit of Labour.
4
Q
What is the Marginal Revenue Product?
A
It is the additional revenue a firm earns by employing 1 additional unit of an input.
5
Q
What is the Marginal Revenue Product of Labour? MRP L
A
MRP L=MP L × P x
