Which of the following statements is true?
A) Marginal product is the change in total revenue divided by a one-unit change in a factor.
B) Marginal revenue is the change in total output divided by the change in output.
C) Marginal revenue product is marginal product times marginal revenue.
D) Marginal factor cost is equal to average total cost.

Question

Quizplus · Accepted Answer

Marginal revenue product is calculated by multiplying marginal product by marginal revenue. It measures the change in total revenue that results from a one-unit change in a factor of production. Option A is incorrect because it defines marginal revenue, not marginal product. Option B is incorrect because it defines the calculation for average product, not marginal revenue product. Option D is incorrect because marginal factor cost measures the change in total cost resulting from a one-unit change in a factor of production, not average total cost.

Which of the Following Statements Is True