The Marginal Value Product of Labor Measures

question 25

Multiple Choice

The marginal value product of labor measures:

• A)the profit that a firm receives by selling the extra output made by an extra worker.
• B)the addition made to total output by an additional worker.
• C)the revenue a firm receives by selling the total output made by all workers.
• D)the extra revenue earned by a firm selling the extra output made by an extra worker.

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Definitions:

Capabilities

Refers to the abilities or qualities necessary to achieve a particular task or to perform a specific function.

Cognitive Abilities

Mental capabilities that include thinking, reasoning, problem-solving, and planning.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Behavior

The actions or reactions of an individual, in response to external or internal stimuli, observable by others.