The Marginal Revenue Product of an Hour of Labor Used

question 63

Multiple Choice

The marginal revenue product of an hour of labor used in steel production is equal to

• A)its marginal physical product times the hourly wage rate.
• B)its marginal physical product times the price of steel.
• C)the hourly wage rate.
• D)its marginal physical product divided by the price of steel.

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Definitions:

Physical Capital

Tangible assets such as buildings, machinery, and equipment used in the production of goods and services.

Productivity

The efficiency with which input resources are converted into outputs, often measured as output per hour worked.

Foreign Economies

Economies outside of a reference country or the global network of national economies interacting through international trade.

Stocks and Bonds

Financial instruments that represent ownership in a company (stocks) and loans made to an entity (bonds).