The value of the marginal product of any input is equal to the marginal product of that input multiplied by the
A)wage.
B)marginal cost of the output.
C)change in total profit.
D)market price of the output.

Question

Quizplus · Accepted Answer

The value of the marginal product of any input is equal to the marginal product of that input multiplied by the market price of the output. This is because the marginal product measures the additional output produced by an additional unit of input, and the market price represents the revenue earned from each unit of output. Therefore, multiplying the marginal product by the market price gives us the value of the marginal product, which represents the additional revenue earned by using one more unit of input.

The Value of the Marginal Product of Any Input Is