The Marginal Product of a Factor of Production

question 24

Multiple Choice

The marginal product of a factor of production

• A) is equal to the ratio of the amount of 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.

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Definitions:

Transportation

The action of moving goods or people from one place to another using vehicles, vessels, or other means.

Facilities

Physical buildings and structures that are used for the production of goods or delivery of services.

Accounts Receivable Turnover

A financial ratio indicating how quickly a company collects on the credit it extends to customers.

Receivables

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.