Marginal Cost Is Calculated by Dividing the Change in Total

question 94

True/False

Marginal cost is calculated by dividing the change in total cost by the change in total output.

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Definitions:

Total Product

The total quantity of output produced by a firm from a given quantity of inputs.

Labor Demand Curve

A graphical representation showing the quantity of labor that firms are willing to hire at different wage rates, assuming other factors remain constant.

Purely Competitive

A market structure characterized by many buyers and sellers, free entry and exit, and products that are homogeneous.

Labor Productivity

Total output divided by the quantity of labor employed to produce it; the average product of labor or output per hour of work.