In the situation of disguised unemployment, marginal productivity of labour is -
Disguised unemployment occurs when more workers are engaged in an activity (such as traditional agriculture) than are actually required, such that withdrawing surplus…
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In the situation of disguised unemployment, marginal productivity of labour is -
Answer and explanation
Correct answer B
Disguised unemployment occurs when more workers are engaged in an activity (such as traditional agriculture) than are actually required, such that withdrawing surplus workers does not reduce total output; hence the marginal productivity of the surplus labour is zero.
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RPSC Senior Teacher Grade II