question
Marginal Revenue Product
answer
the additional revenue created when the next worker is hired
question
Marginal Resource Cost (Marginal Factor Cost)
answer
The cost of hiring the next worker.
question
Marginal Revenue Product Formula
answer
Marginal Product X Price
question
Hiring Rule
answer
Firms will hire where the Marginal Revenue Product is equal to the Marginal Factor Cost to maximize profit (MRP = MRC).
question
Law of Diminishing Marginal Returns
answer
As more of a variable resource is added to a given amount of a fixed resource, marginal product eventually declines and could become negative
question
Specialization
answer
Where each worker has a specific task resulting in an increasing marginal product.
question
Collusion
answer
When Oligopolies cooperate illegally, in secret to maximize their profit.
question
Monopolistic Competition
answer
a market structure in which many companies sell products that are different enough to have different set prices.
question
Allocative Efficiency
answer
When the quantity produced and pr satisfies the needs of consumers and producers equally (where Supply equals Demand)
question
Productive Efficiency
answer
Where the quantity produced is produced for the lowest cost (lowest point of ATC).
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline