The value of the marginal product of labor is ?
Correct answer: B. the price of the output times the marginal product of labor
- A. the price of the output times wage of labor
- B. the price of the output times the marginal product of labor
- C. none of these answers
- D. the wage of labor times the quantity of labor
- E. the wage of labor times the marginal product of labor
Explanation
The value of marginal product converts the extra physical output from one more worker into money value by multiplying marginal product of labor by the output price. It is therefore P × MPL.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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