The Marginal Product of an Input Is

question 78

Multiple Choice

The marginal product of an input is:

• A) total product divided by the amount of the input used to produce this amount of output.
• B) the addition to total output that adds nothing to total revenue.
• C) the addition to total output that adds nothing to profit.
• D) the addition to total output due to the addition of one unit of all other inputs.
• E) the addition to total output due to the addition of the last unit of an input, holding all other inputs constant.

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Definitions:

Marginal Cost

The increase in total cost that arises from producing one additional unit of goods or services.

Industrial Organization

A field of economics dealing with how firms' structures, strategies, and behaviors determine the nature and extent of competition.

Market Conditions

The current state of the economy and the supply and demand dynamics within a specific market.

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds.