Assuming Labor Is the Only Variable Factor of Production, Production

question 193

Multiple Choice

Assuming labor is the only variable factor of production, production of a good will occur

• A) as long as the marginal revenue product of labor is positive.
• B) if society values a good more than it costs firms to hire the workers to produce the good.
• C) as long as the product's price is greater than the marginal revenue product of labor.
• D) if the marginal cost of a unit of output equals the marginal revenue product of labor.

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Definitions:

Compounded Annually

The calculation of interest on both the initial principal and the accumulated interest from previous periods on a yearly basis.

Yearly Contributions

The total amount of money added to a fund or investment over the course of a year.

Rate of Interest

The percentage of a sum of money charged for its use, often expressed annually.

Compounded Semi-Annually

Interest on an investment or loan calculated twice a year and then added to the principal amount, affecting future interest calculations.