Question

g Marginal resource cost refers to the: A. increase in total cost resulting from the production of one more unit of output. B. amount by which a firm's total resource cost increases as the result of hiring one more unit of the resource. C. increase in total revenue resulting from the sale of the extra output of one more worker. D. price at which additional units of a resource can be hired in an imperfectly competitive resource market.

Answer 1

Answer:

Option b: amount by which a firm's total resource cost increases as the result of hiring one more unit of the resource.

Explanation:

Marginal resource cost is the amount that additional unit of a resource brings or contributes to the firm's total resource cost individually.

Marginal Resource Cost is simply the change in total resource cost divided by a one-unit change in resource quantity. A firm will hire resources until MRP=MRC. The determinants of resource demand are the changes in the demand for the product produced, changes in the productivity of the resource, and changes in the prices of other resources.