The Difference Between Marginal Revenue Product and Marginal Product Is

question 4

Multiple Choice

The difference between marginal revenue product and marginal product is that

• A)one is measurable whereas the other is not.
• B)one looks at change in costs whereas the other looks at change in revenue.
• C)one looks at change in costs whereas the other looks at change in output.
• D)one looks at change in revenue whereas the other looks at change in output.
• E)one is a real variable whereas the other is a nominal variable.

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Definitions:

Options Contract

A financial derivative that gives the buyer the right, but not the obligation, to buy or sell an asset at a set price on or before a given date.

Future Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future.

Swap Contract

A financial derivative agreement between parties to exchange cash flows or other financial instruments over a specified time period.

Bond Discount

The discrepancy between a bond's nominal value and its selling price that occurs when the bond is retailed at a price lower than its nominal value.