If the First Worker Produces Ten Custom Picture Frames a Day

question 114

True/False

If the first worker produces ten custom picture frames a day, and the second worker produces twelve additional custom picture frames a day, then diminishing marginal returns have not yet set in.

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Definitions:

Eliminate

The process of removing or getting rid of something.

Contribution Margin

The amount remaining from sales revenue after all variable costs have been deducted, indicating how much revenue is contributing to covering fixed costs and generating profit.

Machine Set-ups

The arrangements and adjustments made to machinery to prepare it for a production run.

Skilled Labour

Workers who have specialized training or expertise in a particular field or job.