The Value of Marginal Product (VMP) of an Input Such

question 214

Multiple Choice

The value of marginal product (VMP) of an input such as labor is the

• A) additional output produced by the last unit of an input.
• B) total revenue divided by the units of the input employed.
• C) extra revenue gained by selling one more unit of output.
• D) extra revenue gained by employing one more unit of the input.

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Definitions:

Flow Matrix

A tool used in process management and operations research to depict the flow of materials, products, or information between process steps or departments.

Cycle Time

The total time from the beginning to the end of a process, indicating the speed at which products are produced or services are delivered.

Workstations

Specific areas or equipment setups designed for specific tasks in a manufacturing or office environment, often focusing on ergonomics and efficiency.

Efficiency

A measure of how effectively resources (such as time, money, and labor) are used to produce desired outcomes, often expressed as a percentage.