The Value of Marginal Product Equals

question 163

Multiple Choice

The value of marginal product equals

• A) total revenue divided by total product (output).
• B) marginal revenue divided by marginal product.
• C) total revenue multiplied by total product (output).
• D) price multiplied by marginal product.

---

Definitions:

Diseconomies of Scale

Increases in cost per unit when output increases, resulting from factors such as management challenges, inefficiencies, and communication problems as firms grow larger.

Large-Scale Business

An enterprise or organization that operates on a significant scale, typically involving extensive operations, large numbers of employees, or substantial revenue.

Diseconomies of Scale

The phenomenon where production costs increase as a firm or industry grows, leading to reduced efficiency and higher per-unit costs.

Law of Diminishing Returns

The principle that adding more of one factor of production, while keeping others constant, will eventually yield lower per-unit returns.