The Value of the Marginal Product Is The

question 242

Multiple Choice

The value of the marginal product is the:

• A)change in total output resulting from a unit change in the quantity of a factor.
• B)change in total revenue resulting from a unit change in the quantity of a factor.
• C)change in total cost resulting from a unit change in the quantity of a factor.
• D)ratio of total revenue to the quantity of a factor employed.

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Definitions:

Utility Function

A mathematical representation used in economics to model the satisfaction or happiness a consumer derives from consuming goods and services.

Edgeworth Box

A diagram used in microeconomics to show the distribution of resources and the optimality of trade-offs between two agents in an economy.

Pareto Efficient

A condition where resources are distributed in such a manner that improving the situation of one person necessitates the detriment of another.

Initial Endowment

Refers to the initial amount of money, assets, or resources that an individual, firm, or country possesses before entering into any trading or production activities.