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:

Remember

The ability to recall information, experiences, or people from the past.

Emotional Timing

The appropriate or opportune moments for expressing feelings.

Listener

Someone who actively pays attention to and processes what others are communicating.

Selective Listening

The practice of hearing and responding to certain parts of a conversation while ignoring others, often based on personal biases or interests.