Practice mode Production Factors

How is the value of the marginal product of labour defined?

Correct answer B. The price of the output times the marginal product of labour

Explanation

It is the extra revenue a competitive firm earns from one more worker, found by multiplying the additional output that worker produces by the price of that output.

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How is the value of the marginal product of labour defined?

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How is the value of the marginal product of labour defined?

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