The additional revenue associated with hiring one additional unit of some factor input, such as labor, is called
A) marginal cost.
B) marginal revenue product.
C) marginal factor cost.
D) marginal physical product.
Answer: B
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Output (Total Product) is maximized when
A) average productivity is at its maximum. B) the "law of diminishing returns" sets in. C) marginal productivity is zero. D) marginal productivity is at its maximum.
An organization producing a wide range of products is more likely to decentralize its decision making process than a firm operating in a single industry
Indicate whether the statement is true or false
What is one potential effect of very high GDP and very low unemployment?
A. A recession B. Stagnation C. Falling interest rates D. Inflation
The cost, c, of a college education that serves only as a signal of a high-quality worker is $20,000. The wage of a known high-quality worker, wh, is $75,000. The wage for a known low-quality worker, wl, is $50,000
For what value of the share of the work force that is of high quality, t, is a pooling equilibrium possible?