When Labor Is the Only Input a Firm Uses, the Marginal

question 591

Multiple Choice

When labor is the only input a firm uses, the marginal cost of a unit of output can be defined as the

• A)marginal revenue multiplied by the wage.
• B)marginal product of labor multiplied by the wage.
• C)marginal product of labor divided by the wage.
• D)None of the above is correct.

---

Definitions:

Global Procurement

The process of sourcing goods and services from the global market to exploit global efficiencies such as lower cost, enhanced quality, and better supply dynamics.

Hospitality Environment

The setting or atmosphere provided by businesses in the hospitality industry, such as hotels, restaurants, and bars, aimed at providing services for guests or visitors.

Multinational Hotel

A hotel business that operates in multiple countries, catering to international standards and diverse clienteles.

Contractual Risk

The potential of loss arising from the obligations outlined in a contract not being met by one or more parties.