How is the value of the marginal product of labor defined?

Production Factors MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Production Factorseconomics-mcqs › production-factors
Published
30 May 2019
Last updated
28 May 2026

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Explanation

The value of the marginal product of labor is calculated by multiplying the price of the output by the marginal product of labor. This represents the additional revenue generated by employing one more unit of labor.

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