The equilibrium value of the marginal product of a factor is the additional value produced by the last unit of that factor employed in the factor market as a whole.

Question

Quizplus · Accepted Answer

This statement is true. The equilibrium value of the marginal product of a factor refers to the additional output produced by the last unit of a factor when all units are employed at the market equilibrium, and this value is determined by the intersection of the market supply and demand curves for the factor.

The Equilibrium Value of the Marginal Product of a Factor