Which formula is CORRECT?
A)VMPL = MC × P.
B)VMPL = MPL × P.
C)MPL = VMPL × P.
D)VMPL / MC = TR.

Question

Quizplus · Accepted Answer

The correct formula for the value of the marginal product of labor (VMPL) is VMPL = MPL × P, where MPL is the marginal product of labor and P is the price of the output. Option A is incorrect because it multiplies the marginal cost (MC) by the price (P) instead of the MPL. Option C is incorrect because it divides the VMPL by the price (P) to find the MPL. Option D is unrelated to the formula for VMPL and instead refers to the relationship between VMPL and total revenue (TR). Hence, the correct choice is B.

Which Formula Is CORRECT