The Change in the Total Revenue of a Firm That

question 111

Multiple Choice

The change in the total revenue of a firm that results from employing one additional unit of a factor of production is defined as the

• A) total revenue product of the resource.
• B) marginal product of the resource.
• C) marginal revenue product of the resource.
• D) average revenue product of the resource.

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Definitions:

Producers

Individuals or businesses that create and supply goods or services in the economy.

Tax Rate

The amount of tax people are required to pay per unit of whatever is being taxed.

Excise Tax

A tax levied on specific goods, services, or transactions, such as tobacco, alcohol, and fuel, usually to discourage consumption or raise government revenue.

Supply Curve

A graphical representation of the supply schedule, showing the relationship between quantity supplied and price.