The value of the marginal product of labor is the ________.

Question

Quizplus · Accepted Answer

The value of the marginal product of labor is the additional amount of revenue generated by hiring an additional unit of labor. It is represented by the firm's labor demand schedule, which shows the quantity of labor that the firm is willing to hire at different wage rates. Option A is incorrect because the value of the marginal product of labor is not the same as the firm's marginal cost schedule, which shows the additional cost incurred by producing an additional unit of output. Option B is incorrect because the value of the marginal product of labor is not the same as the firm's marginal revenue schedule, which shows the revenue generated by selling an additional unit of output. Option D is incorrect because the value of the marginal product of labor is not determined by the labor supply schedule facing the firm, which shows the quantity of labor available in the market at different wage rates.

The Value of the Marginal Product of Labor Is the ________