What Can We Conclude the Greater the Marginal Revenue Product

question 19

Multiple Choice

What can we conclude the greater the marginal revenue product of labour is?

• A) the greater the demand for labour is
• B) the greater the supply of labour is
• C) the lower the equilibrium wage is
• D) the lower the marginal resource cost of production is

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Definitions:

Debt-Equity Ratio

The comparative measure of equity and debt in the financing framework for a company's assets.

Dividend Payout Ratio

The percentage of earnings paid to shareholders in dividends, used to measure the extent to which a company returns profits to its shareholders.

Fixed Assets

Long-term tangible assets that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.