The ______ represents the additional revenue that comes from using one more unit of input.
A)marginal revenue product
B)economic profit
C)learning curve
D)average revenue product

Question

Quizplus · Accepted Answer

The marginal revenue product is defined as the change in total revenue that results from a one-unit increase in the quantity of a resource employed, while holding all other resources constant. It measures the additional output that is created when one more unit of input is used, and is therefore the best choice for the given question. Economic profit is the difference between total revenue and total cost, and is not directly related to the additional revenue from one more input. Learning curve refers to the process of improving efficiency over time, and is not directly related to revenue. Average revenue product is the total revenue produced per unit of input, and does not capture the incremental change in revenue from using one more unit of input.

The ______ Represents the Additional Revenue That Comes from Using