Assume That Labor Is the Only Variable Input and That

question 166

Multiple Choice

Assume that labor is the only variable input and that the payment made to labor is denoted as W. The marginal product of labor can be stated as

• A) (W) × (MC).
• B) W/MC.
• C) MC/W.
• D) TC/W.

---

Definitions:

Portfolio's Sigma

Portfolio's Sigma, often synonymous with standard deviation, quantifies the overall risk or volatility of a portfolio, indicating how its returns can vary from the expected return.

Single Index Model

A financial model that describes the return of a stock as a function of the return of a market index, plus a residual unique to the stock.

Actual Return

The real return an investor receives on an investment, factoring in all gains, losses, dividends, and interest.

Risk-Free Rate

The rate of return on an investment with no risk of financial loss, often represented by the yield on government securities.