Final answer:
The marginal revenue product represents the additional revenue generated from using an additional unit of a resource. It is calculated by multiplying the marginal product of labor by the marginal revenue.
Step-by-step explanation:
The marginal revenue product represents the additional revenue generated from using an additional unit of a resource. It is calculated by multiplying the marginal product of labor (the additional output produced by one additional unit of labor) by the marginal revenue (the additional revenue generated from selling one additional unit of output).
In firms with some market power in their output market, the marginal revenue product is used instead of the price because the firm must lower its price in order to sell additional output. As employment increases, the firm's marginal revenue declines.