All of the following will cause the value of the marginal product of labor to increase, EXCEPT:
A)an increase in the price of the good sold by the firm
B)a new production technology is developed and implemented by the firm
C)an increase in the number of workers employed by the firm
D)an increase in the quantity of other factors of production used by the firm

Question

Quizplus · Accepted Answer

The value of the marginal product of labor increases with an increase in the price of the good (A), improvements in production technology (B), and an increase in other factors of production (D). However, an increase in the number of workers (C) does not necessarily increase the value of the marginal product of labor; it could decrease due to the law of diminishing returns.

All of the Following Will Cause the Value of the Marginal