The change in the total revenue of the firm from adding another resource is the _____
A)total product.
B)total revenue.
C)marginal product.
D)marginal revenue product.
E)marginal revenue.

Question

Quizplus · Accepted Answer

The change in the total revenue of the firm from adding another resource is known as the marginal revenue product. This measures the additional revenue the firm earns from using an additional unit of a resource, such as hiring an additional worker. It is calculated as the marginal product of the resource multiplied by the marginal revenue of the output produced.

The Change in the Total Revenue of the Firm from Adding