How Many Workers Are Willing and Able to Work at the Optimal

question 121

Multiple Choice

How many workers are willing and able to work at the optimal union wage rate in Figure 31.1?

• A)10.
• B)13.
• C)16.
• D)24.

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Definitions:

Average Product

The output per unit of input, such as labor or capital, calculated by dividing total output by the total quantity of the input.

Marginal Product

The additional output produced as a result of using one more unit of a particular input, holding all other inputs constant.

Capital/Labor Ratio

The capital/labor ratio is a measure used in economics to indicate the amount of capital relative to the quantity of labor used in the production process.

Labor Productivity

The measure of the economic output produced per unit of labor input.