The Marginal Revenue Product of Labour Is the Change in the Value

question 98

Multiple Choice

The marginal revenue product of labour is the change in the value of the firm's output resulting from

• A)a change in the product's price.
• B)an increase in the marginal physical product of labour.
• C)a change in the wage rate paid to labour.
• D)producing one more unit of output.
• E)hiring one more unit of labour input.

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Definitions:

Network Effects

The phenomenon where increased numbers of users or participants improve the value of a good or service.

Natural Monopoly

A situation where due to high fixed costs or other barriers, a single firm can supply a product or service to an entire market at a lower cost than what two or more firms could.

Nondiscriminating Monopolist

A monopolist who charges a single price for all units of output sold, rather than charging different prices to different consumers.

Society's View

The collective opinions, beliefs, and values held by a community or society on various topics.