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Marginal Revenue Product Is Obtained by Multiplying the Price of the Product

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Marginal revenue product is obtained by multiplying the price of the product by the marginal resource cost.


Definitions:

Efficiently

Performing tasks in the most effective way with the least waste of time and effort.

Assets

Economic resources owned or controlled by an individual or organization that are expected to produce positive economic value.

Return on Equity

A measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

Net Profit

The remaining income after all expenses, taxes, and costs have been deducted from a company's total revenue.

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