Asked by Delores Perry on Jun 12, 2024
Verified
Marginal resource cost refers to the:
A) increase in total revenue resulting from the sale of the extra output of one more worker.
B) price at which additional units of a resource can be hired in an imperfectly competitive resource market.
C) increase in total cost resulting from the production of one more unit of output.
D) amount by which a firm's total resource cost increases as the result of hiring one more unit of the resource.
Marginal Resource Cost
The additional cost incurred by acquiring or using one more unit of a resource.
Total Resource Cost
The overall expenses incurred in the production of goods or services, including raw materials, labor, and overhead costs.
- Outline the specific circumstances that allow a firm to maximize earnings in the spheres of labor and product markets.
Verified Answer
GS
Gurnoor SinghJun 19, 2024
Final Answer :
D
Explanation :
Marginal resource cost refers to the additional cost incurred by a firm when it hires one more unit of a particular resource. In other words, it is the amount by which a firm's total resource cost increases as the result of hiring one more unit of the resource. Therefore, option D is the correct choice.
Learning Objectives
- Outline the specific circumstances that allow a firm to maximize earnings in the spheres of labor and product markets.