demand derived from the products that the resources help produce
additional ouptup resulting from using each additional unit of labor
marginal revenue product
the change in total revenue resulting from the use of each additional unit of a resource
rule for employing resources
indicates that a firm will purchase more of an input whose relative price has declined and use less of an input whose relative price has increased
indicated that a firm will purchase more of one particular input when the price of the other input falls and less of that particular input when the price of the other input rises
elasticity of resource demand
measures the sensitivity of producers to changes in resource prices
least-cost combination of resources
when the last dollar spent on each resource yields the same marginal product
equation for LC
profit macimizing combination of resources
when each resource is employed to the point at which its marginal revenue product equals its resource price
marginal productivity theory of income distribution
income gets distributed according to contribution to society's ouput
Please allow access to your computer’s microphone to use Voice Recording.
We can’t access your microphone!
Click the icon above to update your browser permissions and try again
Reload the page to try again!
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.
Your microphone is muted
For help fixing this issue, see this FAQ.