Marginal Product of Labour Is the Increase in Total Product

question 115

Multiple Choice

Marginal product of labour is the increase in total product that results from a

• A)one-unit increase in the quantity of labour employed, other inputs remaining the same.
• B)one-unit increase in the quantity of fixed inputs employed, holding the quantity of the variable inputs constant.
• C)one-unit increase in both the quantity of variable and fixed inputs.
• D)change in the cost of labour.
• E)1 percent change in the quantity of labour and the quantity of capital employed.

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Definitions:

Decision

The process of making choices or identifying a course of action from several alternatives, often based on information or data analysis.

Relevant

Pertinent or related to the matter at hand, especially in the context of decision-making.

Proprietorship Form

A business organization that is owned and operated by an individual, where there is no legal difference between the owner and the business.

Economic Unit

An economic unit is an entity, such as an individual, household, or company, making decisions regarding the allocation of resources and consumption.