The Marginal Revenue Product of a Resource

question 132

Multiple Choice

The marginal revenue product of a resource

• A) is defined as the marginal product of the resource multiplied by the resource price.
• B) simply means that a firm should add to its capital stock as long as competition requires it.
• C) equals the extra output produced by an additional unit of the resource multiplied by the marginal revenue per unit of that output.
• D) equals the average product of the resource multiplied by the cost of hiring an additional (marginal) unit of the resource.

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Definitions:

Tay-Sachs Disease

A serious genetic disease in which abnormal lipid metabolism in the brain causes mental deterioration in affected infants and young children; inheritance pattern is autosomal recessive.

Autosomal Recessive

A mode of inheritance in which a trait or disorder is expressed in individuals who have two copies of a mutant gene on one of the non-sex chromosomes (autosomes).

Lipids

A broad group of naturally occurring molecules that include fats, waxes, sterols, fat-soluble vitamins (such as vitamins A, D, E, and K), monoglycerides, diglycerides, triglycerides, and phospholipids.

Hemophilia

A rare genetic disorder in which the blood's ability to clot is severely reduced, causing the patient to bleed severely from even a slight injury.