The Marginal Product of Labor Is Defined As

question 78

Multiple Choice

The marginal product of labor is defined as:

• A) output divided by labor.
• B) the additional output generated by hiring an additional unit of labor.
• C) the additional output generated by hiring an additional unit of labor and capital.
• D) the additional output generated by hiring an additional unit of capital.
• E) the additional revenue generated by hiring an additional unit of labor.

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Definitions:

Consumer Surplus

The separation between what consumers envisage paying for a good or service and the amount they actually disburse.

Producer Surplus

The gap between the price that sellers are ready to take for a product or service and the actual price they get from the market.

Deadweight Loss

An economic inefficiency that arises when the balance for a product or service is either not attained or cannot be attained.

Consumer Surplus

The differential between the overall amount consumers are willing and financially prepared to spend on a good or service, and what they end up spending.