The marginal revenue product
A. gives the increase in cost when there is an increase in a variable input.
B. always increases when there is an increase in a variable input.
C. gives the change in total product when an additional unit of a good is hired.
D. represents the incremental contribution to the firm's total revenues obtained from an increase in a variable input.
Answer: D
You might also like to view...
Which of the following will tend to result in more proven oil reserves?
A) rising oil prices B) development of oil substitutes C) conservation measures D) all of the above
Adverse selection
a. occurs when the overall quality of choices facing a consumer is very low. b. is a greater problem for employees than employers. c. occurs more frequently in the market for new cars than used cars. d. is not easily remedied by free markets.
The nominal rate of interest is
A) the rate observed in the market that includes an inflation premium. B) not the rate observed in the market. C) not adjusted for inflation. D) expressed in dollars from the chosen base year.
Betty and Ann live on a desert island. With a day's labor, Ann can produce 8 fish or 4 coconuts; Betty can produce 6 fish or 2 coconuts
Ann's opportunity cost of producing 1 coconut is ________ and she should specialize in the production of ________. A) 8 fish per coconut; fish B) 2 fish per coconut; coconuts C) 6 fish per coconut; coconuts D) 0 fish per coconut; coconuts