Suppose That When a Firm Hires One Additional Unit of Labour,total

question 73

Multiple Choice

Suppose that when a firm hires one additional unit of labour,total product increases from 100 to 110 units of output per month.Marginal product must therefore be

• A)increasing.
• B)positive.
• C)decreasing.
• D)constant.
• E)zero.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service offered for sale matches the quantity being demanded, ensuing a state of balance in the market.

Inverse Demand Function

A mathematical function that expresses the price of a good or service as a function of the quantity demanded, showing how price varies with demand levels.

Tax Imposed

A financial charge or other levy placed upon an individual or a legal entity by a governmental organization in order to fund various public expenditures.

Grapefruit

A large, tart citrus fruit with a segmented interior, often eaten for breakfast or used in culinary dishes.