The marginal revenue product of a resource:
A. is defined as the marginal product of the resource multiplied by the resource price.
B. simply means that a firm should add to its capital stock as long as competition requires it.
C. equals the extra output produced by an additional unit of the resource multiplied by the price of that output.
D. equals the average product of the resource multiplied by the cost of hiring an additional (marginal) unit of the resource.
Answer: C
You might also like to view...
In the figure above, the Lorenz curve that shows the richest 20 percent of households receiving 40 percent of all income is
A) curve A. B) curve B. C) curve C. D) curve D.
Which of the following is one reason for the decline in aggregate demand that led to the recession of 2007-2009?
A) falling oil prices B) increases in housing prices C) a decline in government spending D) the financial crisis
Traditional economics assumes that:
A. the context of choices affects behavior. B. laissez-faire is the right precept to apply. C. the way choices are presented doesn't matter. D. people are predictably irrational.
In economics, the term physical capital
A. refers to the stock of merchandise already produced. B. refers to funds used by businesses to acquire goods and services. C. refers to the process of raising funds through the stock market. D. refers to all manufactured resources used for production.