The Marginal Revenue Product of Labor Is Defined as

question 20

Multiple Choice

The marginal revenue product of labor is defined as

• A)the change in the firm's revenue as a result of selling one more unit of output.
• B)the change in the firm's output as a result of hiring one more worker.
• C)the change in the firm's profit as a result of hiring one more worker.
• D)the change in the firm's revenue as a result of hiring one more worker.

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Definitions:

Domestically Produced Tools

Tools and equipment that are manufactured within a country's borders, typically used to refer to products made using domestic labor and resources.

Inflation Rate

The proportional rate that reflects how prices for goods and services are escalating, causing the purchasing capability to decline.

Nominal GDP

The gross domestic product measured in current prices without adjusting for inflation.

Real GDP

The calculation of a nation's economic production after accounting for changes in prices, such as inflation or deflation, which shows the actual value of the products and services generated.