The Value of Leslie Knope
Ben and Chris come into town from Indianapolis to help cut the town’s budget because of their pending financial situation. Ben suggests firing Leslie to relieve some of the spending associated with the inflated budget, but Ron describes how valuable Leslie is to the department and how she’s worth her salary. He basically argues that her marginal productivity vastly exceeds her salary despite making the second largest salary in the department.
See more: derived demand, government shutdown, government spending, marginal product, marginal revenue product, total wage bill, types of income, value