Efficiency Wages

question 3

Multiple Choice

Efficiency wages

• A)may increase productivity.
• B)will increase unemployment.
• C)may improve worker health.
• D)All of the above are correct.

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Definitions:

Marginal Cost

The excess cost that arises from the production of an extra unit of a product or service.

Marginal Product

The additional output that is produced by employing one more unit of a specific input, keeping all other inputs constant.

Output Levels

Refers to the quantity of goods or services produced by a company, sector, or economy within a specific period.

Marginal Cost Curve

A graphical representation that shows how the cost of producing one additional unit of a good varies as production increases.