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Giga-Mart Offers a Wide Selection of Products at Lower Prices

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Giga-Mart offers a wide selection of products at lower prices than department stores. What would it be classified as?


Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production.

Wages

Payments made to employees for their labor, typically calculated on an hourly, daily, or piecework basis.

Economic Rent

The excess payment made to a factor of production over and above what would be needed to keep it in its current use.

Marginal Revenue Product

The additional revenue generated from employing one more unit of input, such as labor or capital.

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