W/Vmp = ? I think it is the marginal product....but I have really no clue....any help on this?
$W$ = Wage
$VMP$ =Value of Marginal Product
When $W/VMP$ <1, workers generate more value than they cost to pay. Hire more workers.
When $W/VMP$ >1, workers generate less value than they cost to pay. Hire less workers.
Therefore when $W/MVP$ = 1 you are purchasing your optimal amount of labour.