Which of the Following Best Describes the Marginal Cost of Labor

question 58

Multiple Choice

Which of the following best describes the marginal cost of labor?

• A) The additional cost to the firm of the taxes, fringe benefits, and office space that one more worker will require.
• B) The additional cost to the firm of hiring one more unit of labor.
• C) The additional cost to the firm of producing the additional product that will be sold because of hiring one more unit of labor.
• D) The cost paid by the consumer, through a higher price, when a firm must raise prices to cover the cost of hiring an additional employee.

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Definitions:

HSBC North America Holdings

A subsidiary of HSBC Holdings plc, it is one of the largest banking and financial services organizations in North America.

Citizens Financial Group

A financial institution offering a range of banking and financial services.

Insider Trading

The illegal activity of trading a public company's stock or other securities by individuals with access to non-public, material information about the company.

Material Nonpublic Information

Confidential, significant information about a company that has not been released to the public and could affect its stock price or investment decisions.