The Marginal Physical Product of Labor Is

question 261

Multiple Choice

The marginal physical product of labor is

• A) the change in output a firm receives from hiring an additional worker.
• B) the extra revenue a firm receives from hiring an additional worker.
• C) set equal to the going wage rate for labor.
• D) always positive.

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Definitions:

Unemployment Rate

The quantification of jobless individuals in the labor force who are earnestly seeking employment.

Full Employment

A situation in which all available labor resources are being used in the most economically efficient way, often characterized by low unemployment.

Usually Operates

How something commonly functions or is conducted in regular circumstances.

Large Firms

Describes companies that operate on a vast scale, usually characterized by significant market share, extensive operations, and a considerable number of employees.