The Marginal Revenue Product Is

question 28

Multiple Choice

The marginal revenue product is

• A) the change in total output resulting from a one-unit change in variable output.
• B) the change in marginal output resulting from a one-unit change in variable input.
• C) the change in total revenue resulting from a one-unit change in variable input.
• D) the change in marginal revenue resulting from a one-unit change in variable input.

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Definitions:

Reinvested

The act of using profits or earnings to purchase additional assets or to fund operations, aiming for future growth or income.

Payback Period

The time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Internal Rate

This term is ambiguous without further context. It might refer to Internal Rate of Return (IRR), which is a method of calculating an investment's rate of return.