If We Assume That Labor Is the Only Variable Input

question 214

Multiple Choice

If we assume that labor is the only variable input, the slope of the total product curve in the short run

• A) has no economic significance.
• B) measures the average product of labor.
• C) measures the marginal product of labor.
• D) measures both the marginal and average product at all points on the total product curve.

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Definitions:

Quantity Demanded

The amount of a good or service consumers are willing and able to purchase at a given price.

Quantity Supplied

Quantity Supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price, directly influenced by the price level, among other factors.

Inferior Good

A type of good whose demand decreases when the income of consumers increases, opposite to normal goods.

Consumer Income

Consumer income is the total earnings of an individual or household from various sources, including employment, investments, and government assistance, available for spending and saving.