Marginal revenue product is:
a. defined as the amount that an additional unit of the variable input adds to the total revenue
b. equal to the marginal factor cost of the variable factor times the marginal revenue resulting from the increase in output obtained
c. equal to the marginal product of the variable factor times the marginal product resulting from the increase in output obtained
d. a and b
e. a and c
Question 2
Straight line pay for performance
a. Eliminates the managers' incentives to lie about the budget
b. Breaks the link between meeting a particular budget goal and compensation
c. Rewards the manager for doing more and punishes them for doing less
d. All of the above
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