Assuming Labor Is the Only Variable Factor of Production, Production

question 161

Multiple Choice

Assuming labor is the only variable factor of production, production of a good will not occur

• A) as long as the marginal revenue product of labor is positive.
• B) if society values a good less than it costs firms to hire the workers to produce the good.
• C) as long as the productʹs price is less than the marginal revenue product of labor.
• D) if the marginal cost of a unit of output equals the marginal revenue product of labor.

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Definitions:

Formalized Sets

Established or official groups or collections of objects, rules, or standards that are systematically organized.

Guidelines

Recommended principles or practices that serve as a framework or advice for conduct or action.

Tangible Gain

A clear and measurable benefit or advantage, often of a financial nature.

Utilitarianism

An ethical theory suggesting that the best action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.