When Several Resources Are Combined in the Production of a Good,_____

question 119

Multiple Choice

When several resources are combined in the production of a good,_____

• A)the marginal product of each resource can be easily determined.
• B)the marginal contribution of each resource cannot be easily observed.
• C)allocating revenue among the various resources is easy.
• D)there is minimum competition among the resource suppliers.
• E)the quality of the resources is usually uniform across suppliers.

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Definitions:

Market Price

The prevailing rate at which a product or service is available for purchase or sale in a market driven by competition.

Marginal Revenue

Marginal revenue is the additional income received from selling one more unit of a good or service.

Total Revenue

Total Revenue, in a rephrased definition, represents the aggregate earnings a company receives from selling its products or services, before any expenses are subtracted.

Market Price

The going rate at which a particular market offers to buy or sell an asset or service.