The value of marginal product (VMP) of an input such as labour is the
A) extra revenue gained by employing one more unit of the input.
B) additional output produced by the last unit of an input.
C) total revenue divided by the units of the input employed.
D) extra revenue gained by selling one more unit of output.

Question

Quizplus · Accepted Answer

The value of marginal product (VMP) of an input like labor is defined as the additional revenue a firm earns by employing one more unit of that input, which aligns with option A.

The Value of Marginal Product (VMP) of an Input Such