The Marginal Revenue Product of a Resource

question 82

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 price of that output.
• D) equals the average product of the resource multiplied by the cost of hiring an additional (marginal) unit of the resource.

---

Definitions:

Manual Labor

Manual labor entails physical work done by people, often involving the use of hands and physical strength, as opposed to work done by machines or requiring mental skill.

Trail of Tears

Refers to the forced relocation during the 1830s of Eastern Native American tribes to territories west of the Mississippi River, which resulted in the deaths and suffering of thousands.

Cherokees

A Native American people originally from the southeastern United States, now primarily located in Oklahoma and North Carolina.

Forced Journey

A movement or relocation of individuals or groups that is compelled against their will, often due to conflict, persecution, or environmental factors.