The Additional Output a Firm Produces by Hiring One More

question 187

True/False

The additional output a firm produces by hiring one more worker is called the marginal product of labour.

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Definitions:

Quantity

The amount or number of a material or product which is available, produced, or consumed.

Price Floor

A government- or authority-imposed minimum price that can be charged for a good or service, intended to prevent prices from falling too low.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers matches the quantity supplied by producers, resulting in no surplus or shortage.

Market Price

The actual selling price of a good or service in the market at which it can be bought or sold.