If the output labor produces experiences a decrease in demand,the value of marginal product of labor will:

Question

Quizplus · Accepted Answer

The value of marginal product of labor (VMPL) is the additional output produced by employing an additional unit of labor. If the output labor produces experiences a decrease in demand, then there will be a decrease in the VMPL, as the additional output per unit of labor will decrease. Thus, the demand for labor will decrease (according to the law of demand), as employers will be willing to hire fewer workers at a lower VMPL.

If the Output Labor Produces Experiences a Decrease in Demand,the