The ________ Is the Additional Revenue a Firm Earns by Employing

question 99

Multiple Choice

The ________ is the additional revenue a firm earns by employing one additional unit of labor.

• A) marginal revenue product of labor
• B) marginal labor cost
• C) average labor revenue
• D) per-worker net profit

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Definitions:

Means of Production

The resources, such as land, factories, and tools, required for the production of goods and services.

Proletariat

In Marx’s usage, is the working class. Members of the proletariat perform physical labor but do not own means of production. They are thus in a position to earn wages.

Lumpenproletariat

A term used primarily in Marxist theory to describe the lower strata of the working class, including those who are unemployed or unemployable due to the lack of necessary skills.

Capitalist Development

The evolution or advancement of an economic system in which trade, industry, and the means of production are largely privately owned and operated for profit.