if the marginal revenue product (MRP) of labor at a firm is $5 an hour, and the wage is $4 an hour, the firm should Hire more workers.
The marginal revenue generated by using one more unit of a resource is known as the marginal revenue product (MRP). MRP is used to calculate the ideal resource level and make crucial decisions about business output.
As output rises, the marginal revenue will shift, typically falling as output levels rise. As input and related output continue to rise, the marginal revenue product will typically do the same.
The increased revenue produced by adding an extra unit of a production resource is described by the term marginal revenue product (MRP). It is a crucial idea for figuring out the demand for production inputs and assessing the ideal amount of a resource.
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