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:

Intensity

The magnitude or strength of a particular attribute, such as physical force, emotional feeling, or effort.

Duration

The length of time that something lasts or continues.

Sign

An object, quality, or event whose presence or occurrence indicates the probable presence or occurrence of something else.

Sensory Qualities

Characteristics of objects detected and interpreted by the senses, including taste, smell, sound, touch, and sight.