Dividing the Change in Total Revenue by the Change in Labor

question 54

Multiple Choice

Dividing the change in total revenue by the change in labor gives:

• A) marginal product of labor.
• B) marginal revenue product of labor.
• C) the price of the output.
• D) demand for the output.

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, excluding costs directly related to production.

Differential Income

The difference in income between two alternative business decisions, used in assessing the financial viability of each option.

Special Stitching

Unique or customized sewing techniques used to enhance the design or functionality of a textile product.

Variable Cost

An expense that changes in direct proportion to the activity level or volume of production in a business.