What Are the Respective Payments for the Resources of Natural

question 67

Multiple Choice

What are the respective payments for the resources of natural resources, labour, capital, and entrepreneurial ability?  

• A) interest, wages, profit, and rent 
• B) profit, rent, interest, and wages 
• C) rent, wages, profit, and interest 
• D) rent, wages, interest, and profit

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Definitions:

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit.

Total Variable Cost

The sum of all costs that vary with output level, including costs of labor, materials, and other inputs that change with the level of production.

Average Variable Cost

The variable cost per unit of output, computed by dividing total variable costs by the quantity of output produced.

Total Fixed Costs

The overall total of expenditures that remain steady, unaffected by how much is produced or outputted.