When Labor Is the Only Input a Firm Uses, the Marginal

question 591

Multiple Choice

When labor is the only input a firm uses, the marginal cost of a unit of output can be defined as the

• A)marginal revenue multiplied by the wage.
• B)marginal product of labor multiplied by the wage.
• C)marginal product of labor divided by the wage.
• D)None of the above is correct.

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Definitions:

Accounts Payable

Money owed by a business to its suppliers for goods or services that have been delivered or used but not yet paid for.

Accounts Receivable

Debts owed by clients to a corporation for items or services that have been supplied but are still unpaid.

Fees Earned

Revenue generated from professional services provided, often used in accounting for law firms, consulting businesses, and other service providers.

Cash

Money in the form of bills or coins, immediately available for transactions or expenditure.