The cost efficiency of labor is equal to the
A)Marginal cost of output.
B)MPP of labor times the wage rate.
C)MPP of labor divided by the wage rate.
D)MRP of labor divided by the unit price of labor.

Question

Quizplus · Accepted Answer

The cost efficiency of labor refers to how efficiently the input of labor is used to produce output. This can be calculated by dividing the marginal product of labor (MPP) by the wage rate. It reflects the additional output produced for each additional unit of labor input, relative to the cost of each unit of labor. Therefore, the correct choice is (C) MPP of labor divided by the wage rate.

The Cost Efficiency of Labor Is Equal to the