The Value of Marginal Product of Labor

question 184

Multiple Choice

The value of marginal product of labor

• A) is the change in total product that results from selling one more unit of a good.
• B) is equal to the price of the good produced multiplied by the marginal product of labor.
• C) is equal to marginal revenue multiplied by the quantity.
• D) increases as the amount of labor employed increases.

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Definitions:

Diffusion of Innovation

The process through which a new idea, product, or practice spreads within a population.

Trademark

A symbol, word, or phrase legally registered or established by use as representing a company or product.

Patent

A legal document granting an inventor exclusive rights to produce, use, and sell an invention for a certain period of time.

Average Total Cost

The total cost of production (fixed and variable costs) divided by the number of units produced, representing the cost per unit.