The Value of Marginal Product of Labor

question 189

Multiple Choice

The value of marginal product of labor

• A) is the change in total product that results from selling one more unit of a good.
• B) is equal to the price multiplied by the marginal product of labor.
• C) is equal to marginal revenue multiplied by the quantity.
• D) increases as the amount of labor employed increases.

---

Definitions:

Target Profit

The profit a company aims to achieve in a specific period.

Dollar Sales

Total revenue generated from the sale of goods and services, measured in dollars.

Unit Sales

The quantity of products sold, not considering the sales price or revenue.

Margin Of Safety

Margin of safety represents the difference between actual sales and the break-even point, indicating the buffer a company has before it incurs a loss.