Marginal resource cost is
A)the increase in total resource cost associated with the production of one more unit of output.
B)the increase in total resource cost associated with the hire of one more unit of the resource.
C)total resource cost divided by the number of inputs employed.
D)the change in total revenue associated with the employment of one more unit of the resource.

Question

Quizplus · Accepted Answer

Marginal resource cost refers to the additional cost incurred by a firm when it hires an additional unit of a resource (like labor or capital). It is not directly related to the production of one more unit of output or changes in total revenue, nor is it a simple average cost of inputs employed.

Marginal Resource Cost Is