Answer :
The value of a worker's marginal product of labor is 3) higher for workers with more human capital. Human capital increases productivity, thereby increasing the value of the marginal product of labor as it is often valued at the market price of the additional output produced.
The value of a worker's marginal product of labor is 3) higher for workers with more human capital. Human capital refers to the economic value of a worker's experience and skills, which includes factors like education, training, intelligence, skills, health, and other things employers value such as loyalty and punctuality.
The marginal product of labor (MPL) typically decreases as more labor is employed due to the principle of diminishing marginal returns, particularly when capital is held constant.
However, the presence of human capital can increase productivity, and since MPL is often valued at the market price of the additional output produced, a worker with more human capital is generally able to produce more valuable output, thereby increasing the MPL.
LibreTexts indicates that an economy with more physical or human capital is where workers would be more productive, hence shifting the labor demand curve rightward.
Workers with higher human capital tend to have a higher marginal product of labor because they can more effectively utilize the resources and capital at their disposal, leading to increased output and efficiency.
