The Quantity of Labour Demanded by a Firm in a Competitive

question 45

Multiple Choice

The quantity of labour demanded by a firm in a competitive labour market is such that the

• A) wage rate equals the marginal cost.
• B) wage rate equals the marginal product of labour.
• C) wage rate equals the value of marginal product of labour.
• D) marginal revenue equals the marginal product.

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Definitions:

Production Scheduling

The process of planning and organizing production tasks and activities to efficiently use resources, meet delivery deadlines, and achieve operational goals.

Planning Horizon

The future time period over which planning and decision-making activities are made, often varying in length depending on the strategic or operational focus.

Inventory

A list or record of items, usually tangible assets, held by an organization for sale or production purposes, indicating quantity and sometimes value.

Backlog

The accumulation of unfinished work or orders not yet processed, often indicating a delay in production or delivery.