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Unformatted text preview: for labor since labor is a productive service. A firm is guided in this respect by the marginal productivity rule . The most important principle determining demand for labor is called Marginal Productivity Theory . It attempts to relate marginal contribution to the output produced and the rate of wages required to be paid to the marginal worker. Wages are paid in cash or money units while the product is measured in physical units....
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This note was uploaded on 11/26/2011 for the course ECON MICRO ec 201 taught by Professor - during the Fall '10 term at Montgomery.
- Fall '10