Answer:
The correct answer is option b.
Explanation:
The marginal resource cost is the cost of hiring an additional unit of input. In other words, it is the change in total cost because of hiring an additional unit of output.
It can be calculated by measuring the ratio of change in total cost to change in a number of inputs.
It is helpful in the determination of a number of profit-maximizing inputs. If the cost of the marginal resource is equal to the marginal revenue product, the input level is profit-maximizing. Higher marginal resource cost implies that inputs should be reduced and lower indicates that inputs should be increased.
