Assume that labor is the only variable input and that the payment made to labor is denoted as W. The ________ can be stated as W/MC.
A) marginal revenue product of labor
B) marginal product of labor
C) total cost of labor
D) total revenue from labor

Question

Quizplus · Accepted Answer

The marginal product of labor (MPL) is the additional output produced by an additional unit of labor. The ratio W/MC represents the cost of an additional unit of labor (W) relative to the cost of producing an additional unit of output (MC), which aligns with the concept of MPL.

Assume That Labor Is the Only Variable Input and That