Full formBusiness & Corporate
MRCstands forMarginal Resource Cost
Full Form of MRC
What is MRC?
Marginal Resource Cost (MRC) is an economic concept that refers to the additional cost incurred by a firm when it employs one more unit of a resource, such as labor or capital. In the Indian context, MRC is a key concept taught in undergraduate economics and commerce courses, particularly in microeconomics and managerial economics. It is used by firms to determine the optimal level of resource employment: a firm will hire additional units of a resource until the MRC equals the marginal revenue product (MRP). This concept helps Indian businesses and students understand labor markets, wage determination, and factor pricing. MRC is especially relevant for competitive exams like UGC NET Economics, UPSC, and MBA entrance tests where questions on factor markets appear. The term is commonly used in academic textbooks and business decision-making. A clear grasp of MRC allows students to analyze how firms optimize input usage under different market structures, such as perfect competition or monopsony. In practice, Indian companies apply MRC when evaluating salary increments or outsourcing decisions, ensuring that the cost of additional resources does not outweigh the revenue they generate.
MRC का फुल फॉर्म
सीमांत संसाधन लागत
Example
When the MRC of hiring another worker falls below the MRP, the company should increase its workforce to maximize profit.
MRC — frequently asked questions
What is the full form of MRC?
The full form of MRC is Marginal Resource Cost, which represents the additional cost a firm pays for employing one more unit of a resource.
How is MRC used in Indian business?
MRC helps firms decide how many workers or units of capital to hire by comparing it with the marginal revenue product (MRP). It is commonly taught as part of factor pricing in Indian economics curricula.
Is MRC important for competitive exams?
Yes, MRC is frequently tested in UGC NET Economics, UPSC, and MBA entrance exams under the topic of factor markets, especially when analyzing monopsony and wage determination.