Total expenditure is the change in a firm's total wage bill that results from its hiring of one additional unit of labor.

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Total expenditure refers to the total amount a firm spends on purchasing goods and services, including labor, but is not specifically defined as the change in a firm's total wage bill from hiring one additional unit of labor. The concept described is more accurately related to marginal cost or marginal expenditure on labor.

Total Expenditure Is the Change in a Firm's Total Wage