As the quantity of labour employed by a firm decreases, labour's _______ increases.
A) average cost
B) marginal revenue
C) marginal cost
D) value of marginal product

Question

Quizplus · Accepted Answer

As the quantity of labor decreases, the value of the marginal product of labor increases because each additional unit of labor becomes more productive when there are fewer workers, assuming diminishing returns.

As the Quantity of Labour Employed by a Firm Decreases