The Relationship Between Labour Usage and Output at the Local

question 101

Multiple Choice

The relationship between labour usage and output at the local Starducks is summarized in the table below.The price of a cup of espresso is $1.25 and no other inputs are required.
-Refer to the information above.The value of marginal product for the first worker is

• A) 25 extra cups of espresso.
• B) equal to total revenue at $31.25.
• C) 25 total cups of espresso.
• D) $1.25.
• E) unknown.

---

Definitions:

Production Cost

The total expense incurred in manufacturing a product, including raw materials, labor, and overheads.

Postponement

A strategy in supply chain management that delays the final production or distribution of a product until customer orders are received to reduce inventory costs.

Higher

A term generally used to indicate a greater amount, level, or degree of something.

Associated Cost

Refers to the total expenses directly linked to a specific activity, product, or service.