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Economic Definition of MRP. Defined.

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Term MRP Definition: The abbreviation for marginal revenue product, which is the change in total revenue resulting from a unit change in a variable input, keeping all other inputs unchanged. Marginal revenue product, usually abbreviated MRP, is found by dividing the change in total revenue by the change in the variable input. This is also termed value of the marginal product. Marginal revenue product is a key component for understanding the demand for productive inputs.

 

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