Question: Define the Marginal Revenue Product (MRP). Carefully explain both elements MRP (MR and MP). What happens to MRP as winning percent increases? Explain the impact

Define the Marginal Revenue Product (MRP). Carefully explain both elements MRP (MR and MP). What happens to MRP as winning percent increases? Explain the impact on both MR and MP.

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Marginal revenue product is defined as MP x MR, where MP is the marginal product of the last unit of labor, and MR is the revenue produced by the last unit of labor. As winning percentage increases, MRP falls. This is for two reasons: MR is downward sloping so that as winning percentage increases MR falls; MP is downward sloping because as more talent is hiring the marginal product of any one player falls.

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