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Suppose that a new machine tool having a useful life of only one year costs $80,000.Suppose, also, that the net additional revenue resulting from buying this tool is expected to be $96,000.The expected rate of return on this tool is
Marginal Product
The additional output resulting from one more unit of a given input, holding all other inputs constant.
Average Product
The output per unit of input, measured by dividing the total product by the quantity of input.
Average Product
The output per unit of input, calculated by dividing total production by the number of units of input.
Marginal Product
The additional output that is produced by adding one more unit of a particular input, keeping other inputs constant.
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