In production analysis, what term designates the additional total output generated by hiring one additional worker?
Answer and explanation
Correct answer: B. Marginal physical product of labor
- Step 1: Marginal physical product of labor () is the extra output produced when one more unit of labor is employed while keeping capital constant. Answer: Marginal physical product of labor. Why not the others: Average product is total output divided by total workers, total factor productivity measures overall multi-factor efficiency, and labor utilization tracks active working hours.
Practise more Microeconomics, Business Operations, Financial Management and the Macroeconomic Environment.
Free questions with an explanation for every one, and full timed Poklicna matura (Vocational Matura Slovenia) mock tests.
More Microeconomics, Business Operations, Financial Management and the Macroeconomic Environment questions
- In microeconomics, what fundamental economic concept describes the value of the next best alternative forgone when making a decision?
- In market analysis, what effect does an increase in the market price of a normal good generally have on consumer demand, ceteris paribus?
- In microeconomic theory, what is the term for a market structure characterized by a single seller supplying a unique product with no close s…
- In business production, which of the following is classified as a fixed cost in the short run?
- In price elasticity analysis, what does a price elasticity of demand coefficient with an absolute value greater than one (|Ed| > 1) indicate…
- In economic analysis, at what point is market equilibrium achieved in a competitive market for consumer goods?