When the MPP of labor is zero,ceteris paribus,
A)Employment can be increased only by offering a higher wage rate.
B)No further increases in output can be achieved by using additional units of labor.
C)MRP is at a maximum.
D)Additional units of labor must be employed because other factors of production are being wasted.

Question

Quizplus · Accepted Answer

When the MPP of labor is zero, it means that adding one more unit of labor will not result in any additional output. Therefore, no further increases in output can be achieved by using additional units of labor. Other choices are not necessarily true when MPP of labor is zero.

When the MPP of Labor Is Zero,ceteris Paribus