The Marginal Revenue Product of a Resource

question 132

Multiple Choice

The marginal revenue product of a resource

• A) is defined as the marginal product of the resource multiplied by the resource price.
• B) simply means that a firm should add to its capital stock as long as competition requires it.
• C) equals the extra output produced by an additional unit of the resource multiplied by the marginal revenue per unit of that output.
• D) equals the average product of the resource multiplied by the cost of hiring an additional (marginal) unit of the resource.

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Definitions:

Business Structure

Refers to the organization of a company in terms of its legal status, such as partnership, corporation, or sole proprietorship, affecting its management, operations, and taxation.

Higher Taxes

An increase in the tax rate or imposition of additional taxes on individuals or businesses, often a subject of government fiscal policy.

Fair Use

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U.S. Law

The system of laws and legal norms that govern and regulate the social, economic, and political behaviours within the United States of America.