The value of the marginal product of labor is calculated by multiplying the
A)price of output by the quantity of labor.
B)price of output by the marginal product of labor.
C)wage by the quantity of labor.
D)wage by the marginal product of labor.

Question

Quizplus · Accepted Answer

The value of the marginal product of labor is calculated by multiplying the price of output by the marginal product of labor. This is because the marginal product of labor is the additional output produced by an additional unit of labor, and the price of output is the amount of money that can be obtained for each unit of output.

The Value of the Marginal Product of Labor Is Calculated