What does the Marginal Revenue Product (MRP) measure in economics?

Marginal Revenue Product (MRP) measures the additional revenue that a business earns from hiring one more unit of a resource, like a worker or a machine. To find MRP, you look at how much extra output that resource produces and then see how much money that output brings in. For example, if a factory hires one more worker who produces 10 additional toys, and each toy sells for $5, the MRP of that worker is $50 (10 toys times $5). Understanding MRP helps businesses decide how many workers or resources to hire, ensuring they maximize their profits by balancing costs and revenues. Essentially, MRP shows the value of adding more resources in terms of the extra money they can generate.