The Following Table Shows Total Output Produced by Different Units

question 26

Multiple Choice

The following table shows total output produced by different units of capital.Table 14.3
The marginal revenue product of a resource is the product of the marginal product of the resource and the marginal revenue.
-A perfectly competitive employer of an input will maximize profits from the employment of the input by equating:

• A)the value of the marginal product of the input with the price of the output.
• B)the marginal product of the last unit of the input employed with the input price.
• C)the input price with the price of the product produced.
• D)the marginal revenue product of the input with the input price.
• E)the marginal product of the last unit of the input employed with the price of the product produced.

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Definitions:

Long-term Liability

Financial obligations that are due after a period of more than one year, such as bonds payable or long-term loans.

Cost Method

An accounting method used to value inventory or investments, where the cost of the goods or the investment purchase price is the basis for the value on the balance sheet.

Long-term Investments

Generally, (1) investments in stocks and bonds of other companies that companies normally hold for many years, and (2) long-term assets, such as land and buildings, not currently being used in operations.

Marketable Equity Securities

Shares of publicly traded companies that can be bought or sold on stock exchanges or other financial markets.