Which Statement Is TRUE

question 162

Multiple Choice

Which statement is TRUE?

• A) The value of the marginal product of labour equals the marginal product of labour times price.
• B) The value of the marginal product of labour equals a one-unit change in a factor divided by the change in total revenue.
• C) Marginal cost equals change in total revenue divided by the one-unit change in a factor.
• D) The value of the marginal product of labour equals the change in the quantity of a factor times the price of the factor.

---

Definitions:

Debt-Equity Ratio

This ratio measures the balance between financing a company's assets with equity compared to debt.

Degree of Financial

The measure of a firm's financial leverage, indicating the level of financial risk by comparing debt to equity or assets.

Net Income

The profit of a company after all expenses, taxes, and costs have been subtracted from total revenue, indicating the actual profit earned during a specific period.

Interest Expense

The expense an entity faces over time for borrowing funds.