The Value of Marginal Product (VMP)is

question 27

Multiple Choice

The value of marginal product (VMP) is

• A)equal to the product price multiplied by the marginal physical product of the factor.
• B)equal to marginal revenue product for a product price searcher.
• C)the firm's factor demand curve if the firm is a product price searcher.
• D)a measure of the extra cost that each factor unit adds to the firm's total costs.

---

Definitions:

Efficient Outcome

An allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.

Marginal Cost

The cost associated with producing one additional unit of output, focusing on how total production costs change with production volume adjustments.

Carbon Tax

A financial charge imposed on greenhouse gas emissions, aimed at reducing carbon dioxide emissions and combating climate change.