Marginal Revenue Product Is

question 163

Multiple Choice

Marginal revenue product is

• A)the additional cost of employing a factor.
• B)the additional revenue generated by employing an additional factor unit.
• C)marginal revenue multiplied by price of the factor unit.
• D)price of the good that is sold multiplied by unit cost.
• E)none of the above

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Definitions:

Output Effect

The impact that changes in output have on economic activity, such as variations in production levels affecting GDP.

Resource

An economic or productive factor required to accomplish an activity or to provide a service, such as labor, land, capital, and raw materials.

Wage Rate

The amount of compensation a worker receives per unit of time or per task performed.

Employed

A status referring to individuals who are currently working for pay or profit, including those temporarily absent from their jobs.