The increase in revenue created by hiring one more unit of labour is the
A) value of marginal product of labour.
B) marginal revenue of labour.
C) marginal product of labour.
D) marginal product revenue of labour.

Question

Quizplus · Accepted Answer

The value of marginal product of labour is the increase in revenue from hiring an additional unit of labour, calculated as the marginal product of labour times the price of the output.

The Increase in Revenue Created by Hiring One More Unit