What Directly Measures a Worker's Contribution to a Firm's Revenue

question 112

Multiple Choice

What directly measures a worker's contribution to a firm's revenue

• A)the worker's marginal product
• B)the worker's value of marginal product
• C)the worker's marginal product multiplied by his/her wage
• D)the worker's value of marginal product multiplied by his/her wage

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds over a particular period.

Amortization

Amortization refers to the process of spreading out a loan or intangible asset cost over a fixed period, typically the useful life of the asset, for accounting and taxation purposes.

Market Rate of Interest

The prevailing rate of interest determined by supply and demand in the credit market at which borrowers and lenders agree to transact.

Stated Rate of Interest

The stated rate of interest is the fixed rate that a borrower agrees to pay to a lender, expressed as a percentage of the principal loan amount.