The Value of Marginal Product of Labour Is the Revenue

question 92

Multiple Choice

The value of marginal product of labour is the revenue

• A)generated by selling an additional unit of output.
• B)needed to hire an additional unit of labour.
• C)generated by employing an additional unit of labour.
• D)needed to cover the cost of producing an additional unit of output.
• E)generated to cover the cost of hiring an extra unit of labour.

Analyze the determination of marginal cost (MC), average variable cost (AVC), and average total cost (ATC).

Identify the shutdown point and its implications for firm decision-making.

Calculate operating profits and economic profits for a firm.

Determine the short-run operating conditions for a firm, including whether to operate, shut down, or go out of business.

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Definitions:

Fair Value

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Nonmonetary Assets

Assets that cannot be quickly converted into cash, such as property, plant, and equipment, as well as intangible assets.

Asset Surrendered

A situation or transaction where an asset is given up by its owner, which could be due to sale, exchange, forfeiture, or similar circumstances.

Undepreciated Cost

Undepreciated cost refers to the original cost of an asset minus any depreciation that has been claimed to date, reflecting its current book value.