When the MPP of Labor Is Zero, Ceteris Paribus

question 88

Multiple Choice

When the MPP of labor is zero, ceteris paribus,

• A) Employment can be increased only by offering a higher wage rate.
• B) No further increases in output can be achieved by using additional units of labor.
• C) MRP is at a maximum.
• D) Additional units of labor must be employed because other factors of production are being wasted. Marginal physical product (MPP) is equal to the change in total output associated with one additional unit of input. If the MPP is zero, the last worker hired does not contribute any additional output.

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Definitions:

Reinterpretation

involves the process of understanding or presenting something in a new or different way, often leading to a shift in perception or meaning.

Personal Choice

The freedom to make decisions independently, reflecting personal preferences or values.

Imitating

The action of copying the behavior or actions of another, often a key method of learning in humans and animals.

Operant Conditioning

The learning process that reinforces or punishes behavior. Also called instrumental conditioning.