The equilibrium value of the marginal product of a factor is the additional value produced by the _____ unit of that factor employed in the factor market as a whole.
A)first
B)last
C)most productive
D)least productive

Question

Quizplus · Accepted Answer

The equilibrium value of the marginal product of a factor refers to the additional value produced by the last unit of that factor employed, as it is this unit that equates the cost of the factor to the revenue it generates, establishing equilibrium in the factor market.

The Equilibrium Value of the Marginal Product of a Factor