Which of the Following Is the Best Definition of the Marginal

question 70

Multiple Choice

Which of the following is the best definition of the marginal revenue product (MRP) of a factor of production?

• A) the change in revenue caused by the sale of an additional unit of output
• B) the average product of the factor multiplied by the price of the output
• C) the increase in output resulting from the use of an additional unit of the factor multiplied by the cost of that factor
• D) the change in revenue generated by the sale of the product produced by an additional unit of input
• E) marginal revenue multiplied by total product

---

Definitions:

Average Production Volume

The typical quantity of goods produced over a specific time period, calculated to understand production efficiency and set benchmarks.

Standard Hour Incentive Plan

A compensation system that pays employees extra for efficiency, based on standard times established for completing their work.

Performance Appraisals

The regular review and evaluation of an employee's job performance and overall contribution to an organization.

Piecework Rate

Rate of pay per unit produced.