The marginal revenue product of labor is
A. the additional revenue a firm earns by employing one additional unit of labor.
B. the additional profit a firm earns by employing one additional unit of labor.
C. the additional revenue the firm makes by selling one unit of labor.
D. the marginal product of capital times the price of labor.
Answer: A
You might also like to view...
The current chair of the Board of Governors of the Federal Reserve System is
A) Janet Yellen. B) Alan Greenspan. C) Ben Bernanke. D) Paul Volcker.
Adam Smith advocated laissez-faire because he believed it was in the interest of:
A. society as a whole. B. capitalists, whom he regarded as the most dynamic and progressive element in society. C. the proletariat, who would receive higher wages. D. the government, which would profit from higher taxes.
In order to be binding, a price ceiling
A) must lie above the free market equilibrium price. B) must lie below the free market equilibrium price. C) must coincide with the free market equilibrium price. D) must be high enough for firms to earn a profit.
In the long run, monopolistically competitive firms produce where
A) excess capacity exists. B) the markup is equal to zero. C) the demand curve has shifted so that it intersects the minimum average total cost point. D) average total cost is minimized.