definitions Flashcards
1
Q
Wages
A
price of labour
2
Q
What demand is labour
A
derived demand, nobody wants labour, they want the g + s labour produces
3
Q
Marginal Physical product (MPP)
A
Extra amount of output produced when one or more unit of labour is hired
4
Q
Marginal revenue product (MRP)
A
Extra amount of revenue gained from selling the extra output made when hiring one/more worker
5
Q
Marginal cost of labour (MCL)
A
Addition to the total cost when one or more unit is produced
6
Q
Productivity
A
Output per input per period of time
7
Q
When will firms hire ?
A
Firms will higher up until MRP > MCL because firms are profit maximisers.
8
Q
Marginal cost (MC)
A
The addition to total cost (TC) when one or more unit is made
9
Q
Marginal Revenue (MR)
A
The addition to total revenue (TR) when one or more unit is sold
