Which of the following is true?
A) The value to a firm of hiring another worker is the worker's value of marginal product.
B) A firm will hire more workers if the wage rate is greater than the value of marginal product.
C) The value of marginal product is the cost of hiring a worker.
D) The value of marginal product increases as more workers are hired.
E) The value of marginal product equals the price of the good produced divided by the marginal product.

Question

Quizplus · Accepted Answer

The value to a firm of hiring another worker is indeed the worker's value of marginal product, which represents the additional revenue a firm earns from hiring one more worker. This concept is fundamental in understanding how firms decide on the number of workers to hire.

Which of the Following Is True