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:

Volcanic Eruptions

The release of lava, ash, and gases from a volcano, which can have significant effects on the surrounding environment.

Correct Verb

The verb in a sentence that accurately matches its subject in number and tense, effectively conveying the action or state of being.

Tsunamis

Large, powerful sea waves caused by underwater earthquakes, volcanic eruptions, or other disturbances, capable of causing widespread destruction.

Correct Verb

The usage of the appropriate verb form that agrees with the subject in number and person and fits the sentence meaning.