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Burroughs Wellcome, the Developer and Maker of AZT, a Drug

question 16

Multiple Choice

Burroughs Wellcome, the developer and maker of AZT, a drug to treat persons afflicted with AIDS, charges each patient $6,500 annually-more than many AIDS patients can afford because they are unable to work. This is an example of the
Manufacturer recognizing its:

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Definitions:

Marginal Product

It is the increase in output that results from a one-unit increase in the input, keeping all other inputs constant.

Average Product

The output per unit of a particular input, such as labor or capital, calculated by dividing total product by the quantity of input.

Average Product

The output produced per unit of input used, typically calculated by dividing total product by the quantity of input.

Marginal Product

The additional output gained by employing one more unit of a particular input, keeping other inputs constant.

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