If Q Is Total Real Output,K Is Capital in Use,and

question 75

Multiple Choice

If Q is total real output,K is capital in use,and L is labor employed,then _____ is the formula to calculate the productivity of labor.

• A)K/L
• B)L/K
• C)Q/L
• D)Q/K
• E)(Q + K)/L

Explain derived demand and its implications for labor and capital in various industries.

Understand how the law of diminishing returns affects the productivity of additional workers and the firm's decision-making.

Recognize the impact of changes in product demand on the demand for resources used in production.

Understand the relationship between the wage rate and the quantity of labor demanded.

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