The value of marginal product of labour is the revenue

Question

Quizplus · Accepted Answer

The value of marginal product of labour is the extra revenue generated by the employment of an additional unit of labour. It is the increase in total revenue due to hiring one more unit of labour. Therefore, the correct option is (C): generated by the employment of an additional unit of labour. Options (A) and (D) can be eliminated as they refer to the revenue generated by an additional unit of output, not labour. Option (B) is incorrect as it refers to the cost of labour, not the value of its production. Option (E) is also incorrect as it refers to the cost, not the value of the production of labour.

The Value of Marginal Product of Labour Is the Revenue