Question

In the traditional labor model, the amount that an additional worker hired adds to the revenues of the firm is called the _____ of labor. Question 4 options: maximum revenue price marginal factor cost marginal product marginal fractional cost

Answer 1

Answer:

The correct answer is marginal product.

Explanation:

The marginal product of labor is the change in the output or total product because of hiring an additional unit of labor. In other words, the amount that an additional worker adds to the revenue is its marginal product.  

It can be expressed as,

$MP_{L} \ =\ \frac{\Delta Y}{\Delta L}$

The marginal product of labor depends on the quantity of capital and labor already employed.