Which of the Following Describes the Marginal Product of Labor

question 68

Multiple Choice

Which of the following describes the marginal product of labor?

• A) It is the additional amount of consumer goods that can be bought from an additional hour's worth of work.
• B) It is the additional amount of inputs a firm demands based on a change in consumer demand for the output.
• C) It is the additional amount of output that can be produced from hiring one more worker.
• D) It is the decreasing amount of output that can be produced from hiring one more worker.
• E) It is the value of production from the last worker hired.

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Definitions:

Direct Labor Cost

The total cost of workforce labor that is directly involved in the manufacturing or production of goods or services.

Finished Goods Inventory

The stock of completed products that are ready for sale but have not been sold yet.

Raw Materials Inventory

The total cost of all the materials that are used in production but have not yet been transformed into finished goods, representing a current asset on the balance sheet.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.