Which formula is CORRECT?A) VMPL = MC × P.B) VMPL = MPL × P.C) MPL = VMPL × P.D) VMPL / MC = TR.

Question

Meteib Madhi · Accepted Answer

Final Answer : B, Explanation :  The correct formula for the value of the marginal product of labor (VMPL) is VMPL = MPL × P, where MPL is the marginal product of labor and P is the price of the output. Option A is incorrect because it multiplies the marginal cost (MC) by the price (P) instead of the MPL. Option C is incorrect because it divides the VMPL by the price (P) to find the MPL. Option D is unrelated to the formula for VMPL and instead refers to the relationship between VMPL and total revenue (TR). Hence, the correct choice is B.

Which formula is CORRECT?

A) VMPL = MC × P.
B) VMPL = MPL × P.
C) MPL = VMPL × P.
D) VMPL / MC = TR.

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