-Using Figure 1.6 You Can Tell That

question 83

Multiple Choice

-Using Figure 1.6 you can tell that

• A)there is increasing opportunity cost.
• B)there is unemployment.
• C)there is constant opportunity cost.
• D)the technology does not exist to produce 90 units of soda and 2 units of pizza.

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Definitions:

Marginal Revenue Product

the additional revenue generated from using one more unit of a factor of production, holding other factors constant.

Marginal Revenue Product

The supplementary earnings derived from the utilization of an additional production factor unit.

Marginal Revenue Product

The additional income generated from selling one more unit of a good or service, calculated as the extra revenue produced by the marginal unit of output.

Optimal Use

Optimal use refers to the most efficient way to employ resources to achieve the highest level of satisfaction or output.