If the Extra Output That Is Produced by Hiring One

question 233

Multiple Choice

If the extra output that is produced by hiring one more unit of labor adds more to _____ than to _____,the firm will increase its profit by increasing the use of labor.

• A)total cost;total revenue
• B)total revenue;total cost
• C)marginal cost;marginal revenue
• D)marginal product;marginal cost

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Definitions:

Prepaid Assets

Assets that represent future expenses that have been paid in advance and will be recognized as expenses when they are actually incurred.

Accounts Payable

Liabilities of a business that are yet to be paid out to creditors, typically for purchases of goods and services.

Inventory

Inventory comprises goods and materials that a business holds for the purpose of resale, manufacturing, or production.

Amortization of Premium

The gradual recognition in income statements of the excess amount paid over the face value of bonds over the bond's life.