Question

Marginal resource cost is: A) Determined by the marginal physical product schedule for an input B) A firm's cost of hiring one group of inputs, such as capital or labor C) The increase in a firm's total cost caused by hiring one additional unit of an input D) The firm's demand curve for a productive resource

Answer 1

Answer:

C) The increase in a firm's total cost caused by hiring one additional unit of an input

Explanation:

Marginal resource cost is the increase in a firm's total cost caused by hiring one additional unit of an input. The marginal cost is that additional cost and it is calculated by the change in total cost divided by the change in the number of inputs. Other options are wrong because they are not defined marginal resources cost.