Which statement is TRUE?
A)The marginal product is the change in total revenue divided by a one-unit change in a factor.
B)The marginal revenue is the change in total output divided by the change in output.
C)The value of the marginal product is the marginal product times the price.
D)The marginal cost is equal to the average total cost.

Question

Quizplus · Accepted Answer

The value of the marginal product is equal to the marginal product times the price, which is represented by the formula VMP = MP x P. Option A is incorrect because the marginal product is the change in total output divided by the change in the variable factor of production. Option B is incorrect because the marginal revenue is the change in total revenue divided by the change in output. Option D is incorrect because marginal cost is the change in total cost divided by the change in output, and it is not equal to average total cost.

Which Statement Is TRUE