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Value marginal product (VMP) is: the price of the product multiplied by the addi

ID: 1226556 • Letter: V

Question

Value marginal product (VMP) is: the price of the product multiplied by the additional output resulting from an additional factor unit employed. the total value of the total output of a firm divided by the total quantity of output. the marginal revenue of the product divided by the additional output resulting from an additional factor unit employed. a measure of additional revenue minus additional cost as a result of additional output. the value of an additional unit of product as measured in terms of additional factor cost.

Explanation / Answer

Value marginal product (VMP) is:-

Answer:- The price of the product multiplied by the additional output resulting from an additional factor unit employed. (Option a)

Explanation:- Value marginal product (VMP) = Price of product * Marginal Product.

Marginal Product is the additional output resulting from an additional factor unit employed. In other words, Marginal Product is additional output attributed to an additional unit of the variable factor, other factors remaining constant.

Thus, Value marginal product (VMP) is the price of the product multiplied by the additional output resulting from an additional factor unit employed. (Option a)