Question

Which of the following doest not determine supply of labour?

• A. Size and age-structure of population
• B. Nature of work
• C. Marginal productivity of labour
• D. Speed and Intensity of work

Answer 1

Answer: (C)

Marginal productivity of labour

The marginal productivity theory states that, under conditions of perfect competition, every worker of same skill and efficiency in a given category will receive a wage equal to the value of the marginal product of that type of labour. Marginal productivity of labour is not indicator of supply of labor.