Employment Tends to

question 45

Multiple Choice

Employment tends to

• A) lead the cycle.
• B) be coincident with the cycle.
• C) lag the cycle.
• D) sometimes lead, sometimes lag the cycle.

---

Definitions:

Marginal Cost

The expenditure required to produce one more unit of a particular product or service.

Monopolistically Competitive

A market structure characterized by many firms, differentiated products, and free entry and exit, allowing firms some control over price while still competing on quality, branding, and price.

Externality

A cost or benefit that affects a third party who did not choose to incur that cost or benefit.

Efficient Scale

The level of production at which a firm's average total costs are minimized.