If We Have Information About Workers' Marginal Products, Then Total

question 193

Multiple Choice

If we have information about workers' marginal products, then total and average product can be found by

• A)dividing marginal costs by the number of workers.
• B)multiplying the average marginal product times the number of workers.
• C)summing the marginal values to find the total and multiplying it times the number of workers to get the average.
• D)summing the marginal values to find the total and dividing it by the number of workers to get the average.

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Definitions:

MC

Stands for Marginal Cost, which is the cost of producing one additional unit of a good or service.

MR

Marginal Revenue, the increase in revenue that results from the sale of one additional unit of output.

ATC

Average Total Cost, a calculation used in economics to find the total cost per unit of output when all fixed and variable costs are taken into account.

Economic Profits

The profit a company makes after accounting for both its explicit and implicit costs, including opportunity costs.