Value of Marginal Product Is Defined as the Additional

question 261

Multiple Choice

Value of marginal product is defined as the additional

• A)output a firm would receive after hiring one more factor of production.
• B)cost of hiring one more factor of production.
• C)revenue earned from selling one more unit of product.
• D)revenue earned from hiring one more factor of production.

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Definitions:

Variable Costs

Costs that change in proportion to the level of production or service activity.

Fixed Costs

Expenses that remain constant regardless of the amount of production, like lease payments or wages.

Marginal Costs

The cost of producing one additional unit of a product, which varies depending on the level of production.

Evolutionary-Developed Heuristics

Decision-making shortcuts or rules of thumb that have evolved over time to facilitate complex problem-solving with efficiency.