What Is the Marginal Product of an Input in the Production

question 72

Multiple Choice

What is the marginal product of an input in the production process

• A)the increase in total revenue obtained from an additional unit of that input
• B)the increase in profit obtained from an additional unit of that input
• C)the increase in total profit obtained from an additional unit of that input
• D)the increase in quantity of output obtained from an additional unit of that input

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Definitions:

Market Price

The present cost at which a product or service is available for purchase or sale in the marketplace.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Industry Supply

The total output of goods or services that firms in a specific industry are willing and able to sell at various prices, over a certain period.

Industry Demand

The total demand for all the products or services produced by a particular industry.