Demand, Supply, and Prices Quiz 3

The change in output that results from hiring one additional unit of labor.

• marginal product of labor

• increasing marginal returns

• diminishing marginal returns

• fixed cost

The level of production in which the marginal product of labor increases as the number of workers increases.

• marginal product of labor

• increasing marginal returns

• diminishing marginal returns

• fixed cost

The level of production in which the marginal product of labor decreases as the number of workers increases.

• marginal product of labor

• increasing marginal returns

• diminishing marginal returns

• fixed cost

A cost that does not change no matter how much of a good or service in produced.

• marginal product of labor

• increasing marginal returns

• diminishing marginal returns

• fixed cost

A cost that rises or falls depending on the quantity produced.

• variable costs

• total cost

• marginal cost

• marginal revenue

The sum of fixed costs and variable costs.

• variable costs

• total cost

• marginal cost

• marginal revenue

The extra cost of adding one unit.

• variable costs

• total cost

• marginal cost

• marginal revenue

The additional income from selling one more unit of a good or service, sometimes equal to price.

• variable costs

• total cost

• marginal cost

• marginal revenue

The most desirable alternative given up the result of a decision.

• marginal revenue

• operating cost

• average cost

• negative marginal return

Total cost divided by quantity produced.

• marginal revenue

• operating cost

• average cost

• negative marginal return