In practice,organizations use skills and competencies to assess value of labor instead of marginal revenue product.

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While marginal revenue product is an economic concept, in practice, organizations often use skills and competencies to assess the value of labor. This is because it allows for a more holistic evaluation of an employee's worth, taking into account not just their productivity, but also their skills, knowledge, and other qualities that contribute to the success of the organization.

In Practice,organizations Use Skills and Competencies to Assess Value of Labor