Each Additional Unit of Output Produced by a Unit of Labor

question 42

Multiple Choice

Each additional unit of output produced by a unit of labor is valued at the price of the firm's output

• A) always.
• B) when the firm is selling in a competitive market.
• C) when the firm has monopoly power in the market for its output.
• D) when the firm has monopsony power in the market for labor.

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Definitions:

Ethically

Pertaining to or dealing with morals or the principles of morality; pertaining to right and wrong in conduct.

Subjective Opinions

Personal views or judgments influenced by individual preferences, feelings, or experiences, rather than by external facts or evidence.

Qualitative Differences

Distinctions that are based on the qualities or characteristics of things, rather than on quantity or numerical measures.

Utilitarianism

The moral philosophy that says that we should act in such ways as to provide the greatest good (understood as happiness or pleasure) for the greatest number of people as we possibly can.