The contribution of an additional worker to the total revenue of a firm is known as the:
A) marginal product.
B) marginal revenue product.
C) total product.
D) marginal revenue.

Question

Quizplus · Accepted Answer

The marginal revenue product (MRP) refers to the additional revenue generated by employing one more unit of a factor, such as labor. It is calculated by multiplying the marginal product of the factor by the marginal revenue generated from selling the additional output produced by that factor.

The Contribution of an Additional Worker to the Total Revenue