The General Rule Governing the Hiring of Workers Is To

question 67

Multiple Choice

The general rule governing the hiring of workers is to:

• A)minimize average labor costs.
• B)equate marginal labor costs to marginal labor benefits.
• C)equate total labor costs to total labor benefits.
• D)maximize the marginal product of labor.

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Definitions:

Per-Unit Production Cost

The total expense involved in producing one unit of a product, incorporating both fixed and variable costs.

Economic Profit

A measure of profitability calculated as the revenue minus all costs, illustrating surplus beyond the break-even point.

Marginal Cost

The change in total cost required to produce an additional unit of output.

Average Total Cost

Total cost divided by the number of units produced. It is sometimes called per-unit cost.