Assume That Labor Is the Only Variable Input and That

question 166

Multiple Choice

Assume that labor is the only variable input and that the payment made to labor is denoted as W. The marginal product of labor can be stated as

• A) (W) × (MC).
• B) W/MC.
• C) MC/W.
• D) TC/W.

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Definitions:

GRIT

Graduated and Reciprocated Initiatives in Tension-Reduction—a strategy designed to decrease international tensions.

Social Trap

A situation in which the conflicting parties, by each rationally pursuing their self-interest, become caught in mutually destructive behavior.

Mere Exposure Effect

A psychological effect in which people show a preference for items or concepts they recognize simply because they know them.

Two-factor Theory of Emotion

A psychological theory that proposes emotions are based on physiological arousal and cognitive labeling of that arousal.