The extra output produced by one more unit of labour is its _______.
A
marginal cost
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B
marginal product
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C
marginal revenue
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D
none of the above
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Solution
The correct option is B marginal product
The extra output produced by one more unit of labour is its marginal product. Marginal revenue is the additional earning of the firm from an additional unit sold. Marginal cost is cost of producing an additional unit.