The additional revenue associated with hiring one additional unit of some factor input, such as labor, is called
A. marginal factor cost.
B. marginal cost.
C. marginal revenue product.
D. marginal physical product.
Answer: C
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About how many Americans still live on farms today?
A. 4.5 million B. 14.5 million C. 24.5 million D. 34.5 million
Because of diminishing marginal utility, total utility always decreases when additional amounts of a commodity are consumed.
Answer the following statement true (T) or false (F)
The growth rate of real GDP per person equals the
A) population growth rate plus the growth rate of real GDP. B) change in the economic growth rate divided by the change in the population growth rate. C) the economic growth rate per person divided by the change in the population growth rate. D) growth rate of real GDP minus the growth rate of the population. E) population growth rate plus the growth rate of real GDP then divided by the initial level of real GDP.
Suppose a firm is a price searcher in the product market and hires labor in a perfectly competitive labor market. If the wage rate is $20, the marginal product of the last worker hired is 5, and the firm is hiring the profit-maximizing amount of labor, then the marginal revenue from the last unit of output must be
a. $1 b. $1.50 c. $4 d. $5 e. $20