Asked by Nicholas Jacobs on Apr 29, 2024
Verified
MPL multiplied by PX is the ________, where L denotes labor and X denotes output.
A) cost of a marginal unit of labor
B) value of labor's marginal product
C) marginal revenue of a unit of output
D) marginal cost of a unit of output
Marginal Revenue Product
Additional income derived from the employment of an extra production factor.
- Explore the function of marginal revenue product in setting the right level of workforce engagement.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
B
Explanation :
The expression MPL multiplied by PX represents the marginal product of labor (MPL) times the price of output (P), which is the definition of the value of labor's marginal product.
Learning Objectives
- Explore the function of marginal revenue product in setting the right level of workforce engagement.