Graphically, We Can Think of the Marginal Product of a Factor

question 85

Multiple Choice

Graphically, we can think of the marginal product of a factor as the:

• A)slope of the total production curve, when output is plotted against the quantity of the input that is used.
• B)slope of the total cost curve, when output is plotted against the costs of the quantity of the inputs used.
• C)additional cost associated with producing one more unit of output.
• D)additional inputs associated with producing one more unit of output.

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Definitions:

Perfectly Inelastic

Perfectly inelastic describes a market situation where the demand for a product does not change in response to a change in price.

Upsloping

Characteristic of a curve or line that rises as it moves to the right, often used in economics to describe certain supply curves or cost functions.

Incentive Function

The role of incentives in influencing the behavior and decisions of individuals or organizations.

Competitive Markets

Markets characterized by a large number of buyers and sellers, where no single entity controls the market prices.