The increase in a firm's total revenues resulting from hiring an additional unit of labor is known as the marginal:

Question

Quizplus · Accepted Answer

Marginal revenue product (MRP) is the additional revenue generated by hiring an additional unit of labor. It is calculated by multiplying the marginal product of labor (the additional output from hiring an additional unit of labor) by the price of the firm's output. Therefore, the marginal revenue product is the best answer as it represents the increase in total revenues resulting from the hiring of an additional unit of labor.

The Increase in a Firm's Total Revenues Resulting from Hiring