If a Firm Employs an Extra Unit of Labor, the Additional

question 53

Multiple Choice

If a firm employs an extra unit of labor, the additional product generated by employing the extra unit of labor is

• A) the marginal physical product of labor.
• B) the diminished marginal product.
• C) the outside edge.
• D) total product.

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Definitions:

Natural Monopoly

A market condition where due to high fixed costs or unique resources, a single firm can supply a good or service to an entire market at a lower cost than what two or more firms could.

Monopolist

A single seller in a market, who has significant market power and can influence the price of goods or services.

Profits

The financial gain achieved when the revenue earned from business activities exceeds the expenses, costs, and taxes needed to sustain the activities.

Amtrak

The National Railroad Passenger Corporation, offering intercity passenger train service in the United States.