Asked by Shehroze Tariq on May 26, 2024
Verified
Marginal product is:
A) the output of the least skilled worker.
B) a worker's output multiplied by the price at which each unit can be sold.
C) the amount an additional worker adds to the firm's total output.
D) the amount any given worker contributes to the firm's total revenue.
Marginal Product
The additional output that is produced by adding one more unit of a specific input, keeping all other inputs constant.
Firm's Total Output
The total amount of goods or services produced by a company during a specific period.
- Investigate the contribution of the marginal product of labor towards a firm's aggregate output and decision-making processes.
Verified Answer
VV
Victor VargasMay 28, 2024
Final Answer :
C
Explanation :
Marginal product is the additional output created by adding one more unit of labor while keeping all other input constant. Therefore, Choice C is correct as it refers to the amount an additional worker adds to the firm's total output. The other choices are incorrect as they do not accurately describe the concept of marginal product.
Learning Objectives
- Investigate the contribution of the marginal product of labor towards a firm's aggregate output and decision-making processes.