What is the benefit to the firm from hiring one more additional worker?
A)Marginal revenue product of labour.
B)Marginal revenue.
C)Marginal profit.
D)Total revenue.

Question

Quizplus · Accepted Answer

The benefit to the firm from hiring one more additional worker is measured by the marginal revenue product of labour, which is the change in total revenue from hiring one more worker. By comparing the marginal revenue product of labour to the wage rate, the firm can determine whether it is profitable to hire additional workers.

What Is the Benefit to the Firm from Hiring One