Unit Labor Cost Is Equal to the

question 105

Multiple Choice

Unit labor cost is equal to the

• A)Wage rate.
• B)Wage rate divided by MPP.
• C)The change in labor cost divided by the change in output.
• D)Marginal cost.

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Definitions:

Market Interest Rate

The prevailing rate at which borrowers can obtain loans and lenders can offer funds in the financial market.

Opportunity Cost

The cost of foregone alternatives, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Investment Project

A project involving the allocation of resources, such as time and money, with the expectation of generating future profits or benefits.

Investment Demand Curve

A graphical representation that shows the relationship between the rate of return on an investment and the total amount of investment undertaken.