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:

Preference Decisions

Choices made between alternatives based on preferences for certain criteria or outcomes.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Future Dollar

A term referring to the value of a dollar at a specific point in the future, accounting for factors like inflation.

Taxable Income

The amount of income that is subject to taxes, calculated by subtracting allowable deductions from gross income.