The cost of hiring one more worker, ceteris paribus, is known as

Question

Quizplus · Accepted Answer

The cost of hiring one more worker, ceteris paribus, is known as marginal factor cost. The marginal factor cost represents the extra cost of producing one more unit of output by hiring an additional unit of labor. Therefore, the correct option is C - marginal factor cost. Option A, marginal revenue product refers to the additional revenue generated by producing one additional unit of output. Option B, marginal physical product refers to the additional output produced by adding one more unit of labor. Option D, marginal wage, refers to the additional wage paid to an additional worker.

The Cost of Hiring One More Worker, Ceteris Paribus, Is