Final answer:
To complete the Value Added Per Employee formula, divide the product of the number of products sold and the price per unit by the number of employees. This calculation is part of understanding overall productivity, excluding government and farm workers, and considering the marginal product of labor.
Step-by-step explanation:
Complete the Value Added Per Employee formula: Number of products sold X price per unit ÷ by the number of employees. To calculate the cost of producing different levels of output, you would multiply the number of workers by their wage rate. If widget workers receive $10 per hour, you multiply the Workers row by $10, thus accounting for the labor cost in the production process. Productivity measurements, like the dollar value per hour contributed by a worker to the employer's output, are essential in understanding how efficient the workforce is. It's important to note that this excludes certain sectors such as government or farming due to their market output being difficult to measure or representing a small share of the economy. A productivity index can offer insight into how worker productivity has changed over time. For example, an index of output per hour that equals 100 in the base year and increases to 110.5 in a later year indicates an increase in worker productivity during that period. By understanding the marginal product, which is the additional output produced by adding one more worker hour to the production, employers can determine the value of labor to the firm.