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Always Round Tire has service stores in many parts of the United States.The stores in Tennessee have petitioned for independent local store managers.The managers claim that since Memphis,Nashville,and Knoxville are hundreds of miles apart,each manager is really in a separate market and needs to deal with local marketing,sales,and pricing issues independently.What issues would need to be considered before giving these local managers the authority that they are requesting?
Marginal Physical Product
It is the additional output generated by employing one more unit of a specific input, keeping other inputs constant.
Marginal Product
The additional output resulting from the use of an additional unit of a variable input, holding all other inputs constant.
Wage Rate
The amount of money paid to an employee per unit of time, often per hour or per year, for labor services.
Marginal Product of Labor
The additional output produced as a result of adding one more unit of labor, all else being constant.
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