Return on Assets Pricing Is Based on the Estimated Number

question 13

True/False

Return on assets pricing is based on the estimated number of units to be sold.

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Definitions:

Marginal Revenue Product

The additional revenue generated from using an additional unit of a resource or input.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, holding all other inputs constant.

Variable Input

An input in the production process that changes in quantity with the level of output, such as raw materials or labor hours.

Wage

The fixed regular payment, typically calculated on an hourly, daily, or piecework basis, made by an employer to an employee.