Examlex
The decision about where to invest abroad is influenced by behavioral factors. Explain the behavioral approach to FDI.
Marginal Product of Labor
The additional output a firm gains by employing one more unit of labor, holding other inputs constant.
Variable Input
An input whose quantity can be changed in the short run to increase or decrease production.
Average Product of Labor
The output produced per unit of labor input, calculated by dividing total output by the total number of labor units used.
Variable Input
A production factor that can be adjusted in the short term to change the level of output, such as labor or raw materials.
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