The marginal revenue product of capital is the ?
Correct answer: B. additional value of output from using more capital
- A. change in a company's balance sheet when it acquires new plant
- B. additional value of output from using more capital
- C. change in company's share price
- D. changing value of the capital stock
Explanation
The marginal revenue product of capital is the extra revenue generated by employing one additional unit of capital, usually found by multiplying the marginal product of capital by output price. It concerns additional production value, not a balance-sheet or share-price change.
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