Which of the following statements is true?
A)The marginal product is the change in total revenue divided by a one-unit change in a factor.
B)The marginal revenue is the change in total output divided by the change in output.
C)The value of the marginal product is the marginal product times the price.
D)The marginal cost is equal to the average total cost.

Question

Quizplus · Accepted Answer

The value of the marginal product is calculated by multiplying the marginal product of a factor by the price of the output produced. Choice A is incorrect because the marginal product is the change in total output divided by a one-unit change in a factor, not the change in total revenue. Choice B is incorrect because the marginal revenue is the change in total revenue divided by the change in output, not the change in total output divided by the change in output. Choice D is incorrect because the marginal cost is the change in total cost divided by a one-unit change in output, and it is not equal to the average total cost.

Which of the Following Statements Is True