Which of the Following Quotes Best Illustrates the Idea of Marginal

question 78

Multiple Choice

Which of the following quotes best illustrates the idea of marginal product?

• A)"If I have 10 workers on my assembly line,I can produce 13 tables a day."
• B)"If I add an 11th worker,I can produce 1 extra table a day."
• C)"Each worker produces 2 tables a day."
• D)"I find if I add an extra shift at night,table production only rises by 80 percent because I need more maintenance time on the assembly line."
• E)"If I double workers and double the assembly line,I can make 120 percent more tables."

---

Definitions:

Gross Profit

The income a business earns after subtracting the expenses involved in producing and selling its goods or delivering its services.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for the goods once they are shipped by the seller; the buyer pays for shipping costs.

Physical Count

A method of inventory verification where actual items are counted to match the inventory records.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated as the beginning inventory plus purchases less the cost of goods sold.