Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Profit Maximization
B
Employee Satisfaction
C
Market Share
D
Cost Minimization
Understanding the Answer
Let's break down why this is correct
Answer
The Marginal Revenue Product of Labor (MRPL) helps businesses decide how many workers to hire by showing how much extra money each worker can bring in. Just like MRPL is used for hiring, Total Revenue relates to the overall income a business earns from selling its products. The connection here is that just as MRPL guides hiring decisions, Total Revenue helps in understanding the business's overall financial health. For example, if a company sells 100 toys for $10 each, its Total Revenue would be $1,000. This shows how much money the business makes, which is crucial for planning and decision-making.
Detailed Explanation
Total revenue is the money a business makes. Other options are incorrect because Some might think that happy workers lead to success; Market share is about how much of the market a company controls.
Key Concepts
Marginal Revenue Product of Labor
Optimal Hiring
Total Revenue
Topic
Labor Productivity and Decision-Making
Difficulty
easy level question
Cognitive Level
understand
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