Asked by Samantha Hicks on Jul 04, 2024
Verified
Refer to Figure 14.2.1 above. The value of marginal product (VMPL) , or value of a marginal worker equals the wage rate,
A) in panel (a) .
B) in panel (b) .
C) in both panels.
D) in neither panel.
Value Of Marginal Product
describes the additional revenue generated from employing one more unit of input, such as labor or capital.
Wage Rate
The amount of compensation a worker receives per unit of time or per task performed, often expressed per hour or per piece.
- Identify the marginal revenue contribution of labor.
Verified Answer
IP
Iscela PerezJul 10, 2024
Final Answer :
C
Explanation :
In both panels (a) and (b), the value of the marginal product (VMPL), or the value of a marginal worker, equals the wage rate where the VMPL (Value of Marginal Product of Labor) curve intersects the wage line. This point represents the equilibrium where the value added by the last worker hired is equal to the cost of hiring that worker.
Learning Objectives
- Identify the marginal revenue contribution of labor.