Question

In the market for labor, the price of labor is the:______
a. same as price of the product produced by the labor.
b. real wage.
c. marginal product of labor.
d. number of hours employed per year.

Answer 1

Answer:

b. real wage.

Explanation:

Labor is a factor of production. By definition, it is the physical and mental effort contributed in production of a good or provision of a service. The compensation of labor which is also known as the price, is the real wage or salary. An example a company employee who contributes his/her expertise and is being paid a salary.Other factors of production include land, capital and entrepreneurship.