Asked by Abigail Kooiker on Apr 27, 2024
Verified
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.
Marginal Resource Cost
The additional cost incurred by employing one more unit of a resource.
Total Resource Cost
The total costs incurred for the production of goods and services, including all raw materials, labor, and overhead.
Resource
An asset or input used to produce goods and services, including time, money, labor, and natural resources.
- Identify and explain the relationship between marginal product and marginal resource cost.
Verified Answer
AA
Amena AyeshMay 01, 2024
Final Answer :
B
Explanation :
Marginal resource cost refers to the additional cost incurred by a firm when it hires or acquires 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 the change in total revenue, nor is it a simple average cost of inputs employed.
Learning Objectives
- Identify and explain the relationship between marginal product and marginal resource cost.
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