Assume Labor Is the Only Variable Input and That an Additional

question 20

Multiple Choice

Assume labor is the only variable input and that an additional input of labor increases total output from 72 to 80 units. If the product sells for $6 per unit in a purely competitive market, the MRP of this additional worker is

• A) $6.
• B) $8.
• C) $48.
• D) $80.

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Definitions:

Union Formation

The process of organizing and establishing a union, typically involving workers coming together to advocate for their collective rights and interests.

Collective Action

The effort made by a group to reach and implement agreements in the pursuit of a common interest or goal.

Routine Collective Action

The repetitive and predictable actions performed by groups or collectives as part of their normal functioning.

Revolutionary Action

A significant and often sudden action or movement aimed at causing fundamental changes in societal structures.