d. a period thal is uie Jul e. a period that only has variable costs. The margin
ID: 1114314 • Letter: D
Question
d. a period thal is uie Jul e. a period that only has variable costs. The marginal product of capital: a. is equal to the increase in capital necessary to generate a one-unit increase in output, holding other facto constant. b. is equal to the increase in output obtained from a one-unit increase in capital, holding other factors cons c. is equal to the incremental profit associated with selling one more unit of output. d. is equal to the incremental cost of employing one more unit of physical or human capital. e. is equal to the incremental sales associated with the employment of one extra unit of human or physic capitalExplanation / Answer
Answer :- Option b). is equal to the increase in output obtained from a one-unit increase in capital, holding other factors constant.
Explanation :- Marginal product (MP) of capital is the additional output attributed to an additional unit of the capital (variable factor), other factors remaining constant. Accordingly, Marginal product of capital is the increase in output obtained from a one-unit increase in the capital, holding other factors remaining constant.
Conclusion :- Option b).
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