A Relative Price Is

question 168

Multiple Choice

A relative price is

• A) equal to a money price.
• B) what you get paid for babysitting your cousin.
• C) the ratio of one money price to another.
• D) a price expressed in terms of money.

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Definitions:

Elastic Supply Schedule

A situation where the quantity supplied of a good changes significantly when its price changes.

Marginal Revenue Product

the additional revenue generated from using one more unit of a factor of production, holding other factors constant.

Marginal Revenue Product

The supplementary earnings derived from the utilization of an additional production factor unit.

Marginal Revenue Product

The additional income generated from selling one more unit of a good or service, calculated as the extra revenue produced by the marginal unit of output.