What is the most accurate description of the value of a worker to the firm?
A)The wage.
B)The firm's total output when holding capital fixed.
C)The firm's average product when holding capital fixed.
D)The dollar value of the worker's output.
E)The dollar value of the average worker's output.

Question

Quizplus · Accepted Answer

The dollar value of the worker's output is the most accurate description of the value of a worker to the firm because it represents the actual contribution that the worker makes to the firm's revenue. The dollar value takes into account the quantity and quality of the worker's output, so it provides a more comprehensive measure of the worker's productivity compared to other choices.

What Is the Most Accurate Description of the Value of a Worker