Which of the following statements is true? A) MFC = change in total cost/ change in the quantity of a factor. B) MRP_L = MP_L x (P), where P is the price of labor. C) MFC = the change in the quantity of a factor times the change in the price of the factor. D) MRP_L = MC of the output.

Question

Quizplus · Accepted Answer

MFC, or Marginal Factor Cost, is defined as the change in total cost divided by the change in the quantity of a factor. This measures how much the cost of production changes as the quantity of an input (factor of production) is increased by one unit.

Which of the Following Statements Is True