Marginal Physical Product Is

question 370

Multiple Choice

Marginal physical product is

• A) the change in total output from using an additional unit of one variable input, holding other inputs constant.
• B) the change in total output from using an additional unit of all variable inputs.
• C) the total output divided by the number of units of the variable input.
• D) the change in total output divided by the number of units of the variable input, holding constant all other inputs.

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Definitions:

Future Cash Flows

The projected amounts of money expected to be received or paid out by an entity over future periods as a result of investment, operational, and financing activities.

Payback Period

The length of time required to recover the cost of an investment.

Direct Materials

Materials that can be directly linked to the production of a product and represent a substantial portion of the cost.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.