The Marginal Product of a Factor of Production

question 21

Multiple Choice

The marginal product of a factor of production

• A) is equal to the ratio of the amount that factor of production to the amount of output produced.
• B) is equal to the amount of additional output that can be produced with one additional unit of each factor input.
• C) is equal to the amount of additional output that can be produced with one additional unit of that factor input, holding constant the quantities of the other factor inputs.
• D) always exceeds the average product of that factor input, holding constant the quantities of the other factor inputs.
• E) is equal to the additional output that can be produced with an additional change in total factor productivity.

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Definitions:

Simplify

The process of reducing a mathematical expression or equation to its simplest form.

Compounded Annually

Refers to the process of calculating and adding interest to the principal sum of an investment or loan once every year.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Special Product Pattern

Recognizable forms or formulas used to multiply polynomials quickly and efficiently, often simplifying the multiplication process.