The change in total output resulting from a 1-unit increase in the quantity of a factor of production used, holding the quantities of all other factors of production constant, is:
A) average cost.
B) average product.
C) marginal cost.
D) marginal product.

Question

Quizplus · Accepted Answer

The change in total output resulting from a 1-unit increase in the quantity of a factor of production used is known as marginal product. This concept is important in determining the optimal level of input usage for a firm, as it helps to identify the point at which additional units of input become less and less productive.

The Change in Total Output Resulting from a 1-Unit Increase