Term
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Definition
| Maximum allowable price for a good or sevice, usually set by a government. |
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Term
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Definition
| Minamum allowable price for a good or sevices, typically set by a governmental unit or by a group of sellers. |
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Term
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Definition
| The demand for labor is said to be dependent on, or derived from, the demand for the product being produced. |
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Term
| Marginal Revenue Product of Labor |
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Definition
| The increase in revenue that accrues to the firm when an additional worker is hired; indicates the value of the worker to the firm. |
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Term
| Marginal Product of Labor |
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Definition
| The increase in output due to hiring an additional worker. |
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Term
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Definition
| The increase in revenue from selling an additional unit of the product. |
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Term
| Law of Diminishing Returns |
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Definition
| As additional units if a variable input are added to a given amount of a fixed input, the resulting increases in output eventually will decline. |
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Term
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Definition
| The change in hours of work that occurs in response to a wage change, other things being equal. |
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Term
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Definition
| A measure of the change in the hours of work that occurs when there is a change in income, other things being equal. |
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