The Marginal Product of Labor Indicates ________

question 2

Multiple Choice

The marginal product of labor indicates ________.Therefore the MPL curve is also ________.

• A)the quantity of labor supplied for a given wage;the equilibrium price of labor
• B)the quantity of labor demanded for a given wage;the equilibrium price of labor
• C)the quantity of labor demanded for a given wage;the demand curve of labor
• D)the quantity of labor supplied for a given wage;the supply curve of labor
• E)none of the above

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Definitions:

Variable Component

A portion of a cost or expense that varies directly with changes in production volume, business activity, or other variables.

Least-Squares Regression

A statistical method used to determine a line of best fit by minimizing the sum of the squares of the differences between observed values and those predicted by the model.

Inspection Cost

Expenses associated with the activities necessary to ensure that products or services meet the required standards and specifications.

Contribution Format

A format for the income statement that divides variable costs from fixed costs to emphasize the contribution margin.