MFC is equal to the:
A) marginal product of labor times the price of output.
B) change in total cost resulting from a one-unit change in a factor.
C) change in the quantity of labor times the price of labor.
D) change in total cost resulting from a one-unit change in output.

Question

Quizplus · Accepted Answer

MFC, or Marginal Factor Cost, is the change in total cost that results from employing an additional unit of a factor, such as labor.

MFC Is Equal to The