A curve that shows the cost to the firm of hiring an additional unit of a resource is known as a
A)marginal product curve
B)marginal revenue product curve
C)total revenue product curve
D)marginal revenue curve
E)marginal resource cost curve

Question

Quizplus · Accepted Answer

A curve that shows the cost to the firm of hiring an additional unit of a resource is known as a marginal resource cost curve. The other options do not reflect the cost of hiring an additional unit of a resource. Marginal product curve shows the additional output produced by adding one more unit of a resource, marginal revenue product curve shows the additional revenue earned by adding one more unit of a resource, total revenue product curve shows the total revenue earned by using a given amount of a resource, and marginal revenue curve shows the additional revenue earned from selling one more unit of output.

A Curve That Shows the Cost to the Firm of Hiring