The marginal product of a factor of production
A) is equal to the ratio of the amount of that factor of production to the amount of output produced.
B) is equal to the amount of additional output that can be produced with one additional unit of each factor input.
C) is equal to the amount of additional output that can be produced with one additional unit of that factor input, holding constant the quantities of the other factor inputs.
D) always exceeds the average product of that factor input, holding constant the quantities of the other factor inputs.
Question 2
With high inflation ________.
A) stock market investors are always worse off than consumers and households
B) producers are always worse off than consumers
C) creditors are always worse off than debtors
D) all of the above
E) none of the above
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