Which of the Following Is the Most Accurate Definition of a Worker's

question 69

Multiple Choice

Which of the following is the most accurate definition of a worker's marginal revenue product?

• A) The change in the firm's profits as the result of hiring an additional worker.
• B) The change in the firm's total revenue as the result of hiring an additional worker.
• C) The change in the firm's output as the result of hiring an additional worker.
• D) The change in the firm's cost as the result of hiring an additional worker.

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Definitions:

Public Good

A public good is a commodity or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Willingness To Pay

The maximum amount an individual is prepared to expend on a good or service, reflecting their valuation of it.

Horizontal Summation

A method used in economics to describe the total demand or supply in a market by adding together individual demands or supplies at the same price level across different entities.

Vertical Summation

A method used in economics to aggregate individual demand curves to find total market demand for a good.