Using the Cobb-Douglas Production Function , the Marginal Product

question 14

Multiple Choice

Using the Cobb-Douglas production function , the marginal product of labor, or the real
Wage, is:

• A) .
• B) .
• C) .
• D) .
• E) .

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Definitions:

Economic Profit

The difference between the total revenue received by a business and the total implicit and explicit costs of a business.

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.

Economic Profits

Profits exceeding the opportunity costs of a company; considered an indicator of efficiency and entrepreneurship.

Average Total Cost

The total cost of production divided by the total quantity of goods produced, representing the cost per unit.