The net marginal revenue of an input is equal to the marginal revenue received from selling one more unit of output:
A) reduced by the cost of raw materials required for its production.
B) reduced by the cost of component parts required for its production.
C) reduced by the cost of intermediate products required for its production.
D) all of the above.
E) a and c

Question

Quizplus · Accepted Answer

The net marginal revenue of an input is indeed reduced by all additional costs associated with producing one more unit of output, which includes the cost of raw materials, component parts, and intermediate products required for its production.

The Net Marginal Revenue of an Input Is Equal to the Marginal