Which of the Following Statements Is True of the Marginal

question 164

Multiple Choice

Which of the following statements is true of the marginal product of an input?

• A) The marginal product of an input is given by the ratio of the firm's total output to the units of the input used.
• B) The marginal product of an input increases as more and more of the input is used.
• C) The marginal product of an input can be negative.
• D) The marginal product of the first unit of a variable input is zero.

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Definitions:

Residence

A place where an individual lives or maintains a home, often implying legal or formal status.

Social Class

Social class refers to the division of society into groups based on factors like wealth, occupation, education, and social status.

Trade-in Allowance

The discounted price offered when a customer gives a used item as part of the payment for a new item, reducing the cash cost of the new purchase.

Book Value

The net value of a company's assets minus its liabilities, often used to assess the company's worth.