Marginal resource cost is
A) the increase in a firm's total cost caused by hiring one additional unit of an input.
B) a firm's cost of hiring one group of inputs, such as capital or labor.
C) the firm's demand curve for a productive resource.
D) determined by the marginal physical product schedule for an input.

Question

Quizplus · Accepted Answer

Marginal resource cost is the additional cost of hiring one more unit of an input, and it is determined by the slope of the total cost curve. It is not the cost of hiring a group of inputs (B), the demand curve for a productive resource (C), or determined solely by the marginal physical product (D).

Marginal Resource Cost Is