The Benefit to the Firm from Hiring One Additional Worker

question 162

Multiple Choice

The benefit to the firm from hiring one additional worker is called the

• A)marginal revenue product of labor.
• B)marginal revenue.
• C)marginal profit.
• D)total revenue.

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Definitions:

Economic Profits

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, measuring the excess over the opportunity cost of capital.

Free Entry

A market condition where firms can freely enter or exit the market without facing significant barriers to entry or exit.

Rent-a-Wreck Industry

The business sector that specializes in renting out older, often pre-owned vehicles at reduced rates compared to standard rental services.

Economic Profits

The difference between total revenues and total costs, including both explicit and implicit costs.