Asked by
Jaypee Mongs
on Oct 26, 2024
Verified
The amount by which the use of an additional unit of a factor of production increases a firm's total revenue during a period is called the:
A) value of the marginal product.
B) average product.
C) marginal factor cost.
D) marginal physical product.
Marginal Physical Product
The additional output resulting from a one-unit increase in the quantity of a particular input, holding all other inputs constant.
Marginal Product
The extra output gained by incorporating one more unit of a given input in the production process, assuming all other inputs remain unchanged.
Average Product
The output per unit of input, calculated by dividing total product by the quantity of input.
- Understand the concept of the marginal product and its significance in production.
- Absorb the correlation between the price of a product, its marginal product, and the worth of the marginal product.
Verified Answer
JN
Learning Objectives
- Understand the concept of the marginal product and its significance in production.
- Absorb the correlation between the price of a product, its marginal product, and the worth of the marginal product.