Which of the Following Is the Formula for the Marginal

question 17

Multiple Choice

Which of the following is the formula for the marginal product of labor?

• A) F(L) - F(L - ∆L)
• B) F(L)/L
• C) F(L)/∆L
• D) [F(L) - F(L - ∆L)]/∆L

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Definitions:

Profit

The financial gain realized when the revenue generated from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Profit-Maximizing Quantity

The level of production at which a company achieves the highest possible profit.

Short-Run Monopoly

A monopoly market condition characterized by a single seller in the short term where certain inputs remain fixed.

Profit-Maximizing Price

The price level at which a business can sell its product or service to achieve the highest possible profit.