The Marginal Product of Labor Is Calculated Using the Formula

question 308

Multiple Choice

The marginal product of labor is calculated using the formula

• A)L/Q.
• B)ΔL/ΔQ.
• C)ΔQ/ΔL.
• D)Q/L.

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Definitions:

Total Variable Cost

The sum of all costs that vary directly with the level of production or output, including costs for materials, labor, and energy.

Marginal Cost

The extra financial burden of producing an additional unit of a product or service.

Average Variable Cost

The cost per unit of output that varies with the level of production, excluding any fixed costs.

Learning-by-Doing

The process through which skill and efficiency are improved over time as a result of practice and experience.