Assuming Labor Is the Only Variable Factor of Production, Production

question 161

Multiple Choice

Assuming labor is the only variable factor of production, production of a good will not occur

• A) as long as the marginal revenue product of labor is positive.
• B) if society values a good less than it costs firms to hire the workers to produce the good.
• C) as long as the productʹs price is less 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:

Merger

The voluntary fusion of two or more entities into one, usually to gain a competitive edge or achieve higher efficiency.

Self-Examination

The process of introspectively analyzing one's own thoughts, feelings, and actions to gain self-awareness or insight.

Strategic Plan

A document that outlines an organization's strategy for achieving its goals over a specific timeframe, including objectives, action plans, and resource allocation.

Implementation

The process of putting a decision or plan into effect; execution.