It Is Profitable to Hire Units of Labor as Long

question 183

Multiple Choice

It is profitable to hire units of labor as long as the value of marginal product:

• A) is less than wage.
• B) exceeds average product.
• C) equals price.
• D) exceeds wage.

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Definitions:

Average Fixed Cost

The fixed costs, such as rent or salaries, divided by the number of units produced, calculated over a period of time.

Mixers

Devices or software used for combining, modifying, or creating audio or other media content.

Average Total Cost

The total cost of production divided by the number of units produced, including both fixed and variable costs.

Range of Output

Refers to the variety of products or services produced by a company or industry.