The value of the output produced by the last worker hired is
A) the product price times the output produced.
B) the product price times the output produced minus the wage times the amount of labor hired.
C) the product price times the marginal product of labor.
D) the wage times the marginal product of labor.

Question

Quizplus · Accepted Answer

The value of the output produced by the last worker hired, also known as the marginal revenue product of labor, is calculated as the product price times the marginal product of labor. This reflects the additional revenue generated by hiring one more worker.

The Value of the Output Produced by the Last Worker