The Marginal Product of Labour Is the Change in

question 3

Multiple Choice

The marginal product of labour is the change in

• A) average product from employing one more worker.
• B) total revenue from employing one more worker.
• C) total cost from employing one more worker.
• D) total output from employing one more worker.
• E) total output divided by the change in cost from employing one more worker.

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Definitions:

Fixed Cost

Costs that do not vary with the volume of output produced, such as rent, salaries, and insurance premiums.

Inventory

The total amount of goods and/or materials contained in a store or factory at any given time.

Inventory Management

The practice of ordering, storing, tracking, and controlling inventory to ensure an adequate supply without excessive oversupply or loss.

Just-In-Time Approach

A production strategy that strives to improve a business's return on investment by reducing in-process inventory and associated carrying costs by receiving goods only as they are needed in the production process.