Asked by Dawson Lewis on Jul 08, 2024
Verified
The marginal product of an input is:
A) total product divided by the amount of the input used to produce this amount of output.
B) the addition to total output that adds nothing to total revenue.
C) the addition to total output that adds nothing to profit.
D) the addition to total output due to the addition of one unit of all other inputs.
E) the addition to total output due to the addition of the last unit of an input, holding all other inputs constant.
Marginal Product
The additional output resulting from one more unit of a given input, holding all other inputs constant.
Total Output
The total amount of goods and services produced by an economy or firm in a specific period.
Total Revenue
The total amount of money generated by a firm from selling its goods or services before any costs or expenses are subtracted.
- Comprehend the relationship between marginal product and factors contributing to productivity such as labor and technology.
- Apprehend the structure of production functions and carry out calculations for the marginal and average product of labor.
Verified Answer
HH
Halla HaobshJul 10, 2024
Final Answer :
E
Explanation :
The marginal product of an input refers to the additional output that is produced when the firm adds one more unit of that input, holding all other inputs constant. In other words, it measures the effect that an additional unit of a particular input has on total output. Therefore, the best choice is E, as it describes the addition to total output due to the addition of the last unit of an input while holding constant the other inputs.
Learning Objectives
- Comprehend the relationship between marginal product and factors contributing to productivity such as labor and technology.
- Apprehend the structure of production functions and carry out calculations for the marginal and average product of labor.