Question

The marginal product of a variable input is best described as ________.

• A. total product divided by the number of units of variable input
• B. the additional output resulting from a one unit increase in the variable input
• C. the additional output resulting from a one unit increase in both the variable and fixed inputs
• D. the ratio of the amount of the variable input that is being used to the amount of the fixed input that is being used

Answer 1

Answer: (B)

the additional output resulting from a one unit increase in the variable input

The marginal cost is the cost of producing one extra unit of output, in the short runt the fixed cost does not change by producing one extra unit thus the marginal cost is entirely comprised of the variable cost.