Labour Productivity Can Be Explained By

question 111

Multiple Choice

Labour productivity can be explained by:

• A)technological change and the quantity of capital per hour.
• B)diminishing returns and the quantity of labour per hour.
• C)diminishing returns and the quantity of capital per hour.
• D)technological change and the quantity of labour per hour.

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Definitions:

Marginal Cost

The charge incurred for the manufacturing of one more unit of a particular good or service.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, typically decreasing as production increases.

Average Variable Cost

The total variable costs of production divided by the quantity of output produced, indicating the cost of producing one more unit of a good or service.

ATC

The average total cost is defined as the total production cost divided by the quantity of produced output.