The Value of the Marginal Product of Any Input Is

question 489

Multiple Choice

The value of the marginal product of any input is equal to the marginal product of that input multiplied by the

• A)wage.
• B)marginal cost of the output.
• C)change in total profit.
• D)market price of the output.

---

Definitions:

Mental Set

A tendency to approach situations in a certain way because that method worked in the past.

Dramatically Affect

Refers to having a profound or significant impact on something.

Representativeness Heuristic

A mental shortcut that involves judging the likelihood of an event by comparing it to an existing prototype in our minds.

Availability Heuristic

A mental shortcut that relies on immediate examples that come to a given person's mind when evaluating a specific topic or decision.