The Value Marginal Product of a Resource Is

question 12

Multiple Choice

The value marginal product of a resource is

• A) the marginal product of the resource multiplied by the price of the product it helps to produce.
• B) the price of the product times the price of the resource.
• C) larger when the product price is smaller.
• D) larger when the marginal product is smaller.

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Definitions:

Pollution

It refers to the introduction of harmful substances or products into the environment, causing adverse effects on living beings and ecosystems.

External Costs

Costs that are not reflected in the market price of goods or services, often borne by society.

Efficient

Describes a system or process that operates in a way that maximizes productivity or output with minimal waste or expense.

External Cost

A cost that is not borne by the parties involved in an economic transaction, often affecting third parties.