An Increase in the Marginal Factor Cost of Labor Will

question 325

Multiple Choice

An increase in the marginal factor cost of labor will

• A) lead to an increase in the quantity demanded of labor.
• B) induce a firm to hire fewer workers.
• C) lead to an increase in the value of an additional worker.
• D) cause the value of the marginal product of labor to increase.

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Definitions:

Administrative Expenses

Costs related to the general management and administration of a business, such as office salaries and utilities.

Food and Supplies

Items necessary for operating a service such as a restaurant, including both consumable goods (food) and non-consumable items (supplies).

Flexible Budget

An adjustable budget that changes in response to variations in actual revenue or production levels, allowing for a more accurate comparison of expected and actual expenses.

Net Operating Income

A measure of a company's profitability from its regular business operations, excluding non-operational activities like investments.