In a competitive economy, a worker earns an income equivalent to ?
Correct answer: C. Marginal Product
- A. The amount of brain drain
- B. Marginal utility
- C. Marginal Product
- D. The substitutability of labor to capital
Explanation
In a competitive labor market, a worker’s wage equals the value of the marginal product of labor, meaning the extra revenue generated by the worker’s output. Option c states this principle in shortened form as marginal product.
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