Which of the following statements is true?
A) MFC = change in total cost/ change in the quantity of a factor.
B) MRPL = MPL x (P), where P is the price of labor.
C) MFC = the change in the quantity of a factor times the change in the price of the factor.
D) MRPL = MC of the output.

Question

Quizplus · Accepted Answer

MFC, or Marginal Factor Cost, is defined as the change in total cost divided by the change in the quantity of a factor of production. This measures how much the total cost of production changes when the quantity of a factor (like labor or capital) is increased by one unit.

Which of the Following Statements Is True