The Table Below Shows the Total Production for Varying Numbers

question 94

Multiple Choice

The table below shows the total production for varying numbers of hours worked producing yo- yos.The firm sells its product and hires its workers in competitive markets. $$\begin{array} { | c | c | c | c | } \hline \begin{array} { c } \text { Number of } \\\text { Hours Worked }\end{array} & \begin{array} { c } \text { Number of } \\\text { Yo-Yos } \\\text { Produced }\end{array} & \begin{array} { c } \text { Wage Rate } \\\text { per Hour } ( \$ ) \end{array} & \begin{array} { c } \text { Price of Yo- Yos } \\( \$ ) \end{array} \\\hline 10 & 60 & 10 & 5 \\\hline 11 & 70 & 10 & 5 \\\hline 12 & 78 & 10 & 5 \\\hline 13 & 84 & 10 & 5 \\\hline 14 & 88 & 10 & 5 \\\hline 15 & 90 & 10 & 5 \\\hline\end{array}$$ TABLE 13- 4
-Refer to Table 13- 4.Which of the following statements best describes the situation of this firm when it is employing 15 hours of labour? The 15th hour of labour hired

• A)adds $20 to revenue,but only costs $10 to hire,so this firm should hire more labour.
• B)adds $10 to revenue and costs $10 to hire,so this firm is maximizing its profit at 15 hours of labour.
• C)adds $50 to revenue,but only costs $10 to hire,so this firm should hire more labour.
• D)adds $2 to revenue,but costs $10 to hire,so this firm should hire less labour.
• E)adds $5 to revenue,but costs $10 to hire,so this firm should hire less labour.

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Definitions:

Factor

An element that contributes to a particular result or situation, often used as a variable in experiments and statistical analysis.

Levels

Distinct and gradated stages within a hierarchy or process.

Factor

A variable that is manipulated in an experiment to determine its effect on the dependent variable, or a value that influences results in various contexts.

Factorial ANOVA

A statistical test used to determine the effect of two or more independent variables at multiple levels on a dependent variable.