The marginal product of labor is defined as
A) the additional sales revenue that results when one more worker is hired.
B) the additional output that results when one more worker is hired, holding all other resources constant.
C) the additional number of workers required to produce one more unit of output.
D) the cost of hiring one more worker.
Answer: B
You might also like to view...
The unregulated, single-price monopoly shown in the figure above makes a total economic profit of
A) $24. B) $16. C) $8. D) $4.
A vertical demand curve has an elasticity of demand equal to zero
a. True b. False Indicate whether the statement is true or false
The Gibson Paradox shows that:
a. Central banks face a paradox when they want to stimulate their economies because consumers may not spend the newly created money. b. When monetary policy is loose and expected inflation rises, the nominal interest rate rises rather than falls. c. When fiscal policy is loose (i.e., high government spending and falling tax rates), society as a whole is more willing (not less willing) to give up consumption today for consumption in the future. d. When expected inflation rises, nominal interest rates fall rather than rise. e. When expected inflation falls, government spending tends to increase, rather than decrease, as is frequently assumed.
For a monopolist to maximize profits, its
A. price equals marginal revenue. B. marginal revenue exceeds price. C. price equals average total cost. D. price exceeds marginal cost.