Principles of Economics
7th Edition
ISBN: 9781305156043
Author: N. Gregory Mankiw
Publisher: Cengage Learning US
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Question
Chapter 18, Problem 1QR
To determine
To determine: How the production function is related to marginal productivity of labor.
Expert Solution & Answer
Explanation of Solution
The production function represents the relationship between the quantity of factors of production and the total quantity output produced. Labor is one of the important factors of production. If the marginal factors of production increase, the total quantity of production also increases. That is, the changes in marginal product of labor directly affect the production function. The value of marginal product of labor is equal to the wage rate. Thus, the relationship between the value of marginal product of labor and
Economics Concept Introduction
Concept introduction:
Production function: Aproduction function shows the relationship between quantity of input and quantity of output used during the production process.
Marginal product of labor: Marginal product of labor refers to an additional product to the total product due to a change in one unit of labor.
Value of marginal product of labor: Value of marginal product of labor is the monetary value of the marginal product of labor.
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