Question

What is the Marginal Factor/Resource Cost?

1) The cost of employing one more worker/machine
2) The cost of employing one less worker/machine
3) The total cost of all workers/machines
4) The average cost of employing workers/machines

Answer 1

The Marginal Factor/Resource Cost is the cost of employing one more worker/machine.

Step-by-step explanation:

The Marginal Factor/Resource Cost refers to the cost of employing one more worker/machine. It represents the additional cost incurred when an additional worker or machine is added to the production process. It helps businesses analyze the impact of increasing their labor or capital inputs on their production costs and output.