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------- Can Supply Services, Make Components and Subassemblies, or Even

question 106

Short Answer

------- can supply services, make components and subassemblies, or even assemble an entire product to overcome short- term capacity shortages,


Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a variable input.

Marginal Physical Product

The additional output produced by using one more unit of a variable input, holding all other inputs constant.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor of production, such as labor or capital.

Additional Revenue

The extra or incremental income received from selling one more unit of a product or service.

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