Examlex

Solved

Productive Efficiency Refers to a Condition Where Marginal Cost Is

question 48

True/False

Productive efficiency refers to a condition where marginal cost is equal to marginal revenue in the long run.


Definitions:

Price (P)

The cost necessary to acquire a good or service.

Value of the Marginal Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital, in the production process.

Factor's Price

The payment for the use of a factor of production, such as wages for labor, rent for land, or interest on capital.

Value of the Marginal Product

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

Related Questions