The Marginal Product of an Individual

question 42

Multiple Choice

The marginal product of an individual

• A) depends on the number of similar workers that the firm employs as well as on the size of the firm's capital stock.
• B) is solely a function of the worker's personal characteristics.
• C) is a poorly defined concept because individual effort is difficult to identify and measure.
• D) initially decreases but ultimately increases beyond the minimum effort level.

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Definitions:

Units-Of-Production Method

An approach to depreciation that allocates an asset's cost based on its use, output, or production, rather than passing time.

Amortization

The process of spreading out the cost of an intangible asset over its useful life or paying off a debt over time in regular installments.

Statement Of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how the company manages its liquidity.