The value of marginal product of labor equals: A. the marginal product of labor divided by the...
Question:
The value of the marginal product of labor equals:
A. the marginal product of labor divided by the price of a unit of output.
B. the price of a unit of output divided by the marginal product of labor.
C. the price of a unit of output multiplied by the marginal product of labor.
D. the marginal product of labor.
Marginal Analysis:
The concept of the marginal analysis is used for the short-run analysis where only incremental costs and revenues are considered whereas the fixed costs are ignored. The metrics that may be used for the marginal analysis are the marginal cost, marginal revenue, the marginal product of labor, or marginal revenue product of labor.
Answer and Explanation: 1
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View this answerThe value of the marginal product of labor equals C. the price of a unit of output multiplied by the marginal product of labor.
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Marginal Analysis in Economics: Definition, Formula & Examples
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