Asked by Claudia Holton on Jul 01, 2024
If a firm is able to charge a higher price for its output, all else equal, the value of the marginal product of labor will decrease to offset the higher price.
Marginal Product
Marginal Product is the additional output produced as a result of utilizing one more unit of a particular input, holding all other inputs constant.
- Acquire knowledge on how the value of labor's marginal product, wages, and a company's recruitment strategy are related.
Learning Objectives
- Acquire knowledge on how the value of labor's marginal product, wages, and a company's recruitment strategy are related.