To determine how much additional revenue a firm gains from employing one more worker, it is essential to calculate the __________, which is the product of the marginal product of labor and the marginal revenue of the output produced.

To determine how much extra money a company makes by hiring one more worker, we need to calculate the marginal revenue product. This means we look at two main things: the marginal product of labor, which is how much additional output that new worker can create, and the marginal revenue, which is how much money that extra output brings in. For example, if hiring one more worker leads to producing 10 more items, and each item sells for $5, the marginal revenue product would be 10 items times $5, giving us $50. This calculation helps businesses understand if hiring another worker is a good investment, as they want to make sure the extra revenue is greater than the cost of that worker. Understanding this concept is key for making smart decisions about hiring and managing resources.