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 defined as the increase in total cost that arises from the production of one additional unit of a good or service. It is essentially the cost of hiring one more unit of input, such as labor or capital, which is why option A is correct.

Marginal Resource Cost Is