Question

Marginal resource cost is Multiple Choice

a. the increase in total resource cost associated with the production of one more unit of output.
b. total resource cost divided by the number of inputs employed.
c. the increase in total resource cost associated with the hire of one more unit of the resource.
d. the change in total revenue associated with the employment of one more unit of the resource.

Answer 1

Answer:

a. the increase in total resource cost associated with the production of one more unit of output.

Explanation:

Consider the following calculation

The MRC=TC at N inputs -TC at (N-1) inputs

The marginal resource cost is an addition cost of a new input hired.