Marginal product is defined as
A)the increase in revenue that occurs when an additional unit of a resource is added
B)the increase in output that occurs when all resources are increased by the same proportion
C)the increase in output that occurs when an additional unit of a resource is added, holding all other resources constant
D)the amount of additional resources needed to increase output by one unit when all resources are increased by the same amount
E)the amount of additional money needed to increase output by one unit when all resources are held constant

Question

Quizplus · Accepted Answer

Marginal product is defined as the increase in output that occurs when an additional unit of a resource is added, holding all other resources constant. Choice A is incorrect because it describes marginal revenue instead of marginal product. Choice B describes the concept of constant returns to scale. Choice D describes the concept of diminishing marginal returns. Choice E is unrelated to the concept of marginal product.

Marginal Product Is Defined as