Profit - maximizing firms will hire additional units of a resource up to the point at which the marginal revenue product ( MRP ) of the resource equals its price . With multiple inputs , firms will expand their use of each until the marginal product divided by the price ( MP / P ) is equal across all inputs What is the link between marginal revenue product and wages ? Due to there being discrepancies between the productivity and resource offerings ( i.e. , education , skills , experience ) in labor markets , is it justified for one employee with a higher marginal revenue product to earn a higher wage than an employee with a lower marginal revenue product ? Does this notion of marginal revenue product and wages conflict with minimum wage laws ? Review the mechanics of demand and supply . How dnes marginality work in economics