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.

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Definitions:

Call Option

A financial contract that gives the holder the right, but not the obligation, to buy a specified amount of an underlying asset at a set price within a specified period.

Writer

In the context of options, the writer is the seller who grants the right to the buyer in exchange for a premium, assuming the risk that the asset may have to be delivered under the contract terms.

Premium

The amount by which the price of something, such as a security or insurance policy, exceeds its face value or principal.

European Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price on a specified date.