Consider the Following Production and Cost Schedule for a Firm

question 87

Multiple Choice

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm. $$\begin{array} { | c | l | l | c | } \hline \begin{array} { c } \text { Total Number of } \\\text { Units of the Factor }\end{array} & \begin{array} { c } \text { Total Number of } \\\text { Units of Output }\end{array} & \begin{array} { l } \text { Price per Unit } \\\text { of Output }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { of Production }\end{array} \\\hline 2 & 12 & \$ 10 & \$ 50 \\\hline 3 & 20 & \$ 9 & \$ 55 \\\hline 4 & 26 & \$ 8 & \$ 60 \\\hline 5 & 30 & \$ 7 & \$ 65 \\\hline 6 & 32 & \$ 6 & \$ 70 \\\hline 7 & 32 & \$ 5 & \$ 75 \\\hline\end{array}$$ TABLE 13- 3
-Refer to Table 13- 3.The marginal product of the 6th unit of the factor of production is

• A)32.
• B)4.
• C)2.
• D)- 2.
• E)8.

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Definitions:

Catalogue Price

The price of items as listed in a catalogue, often suggesting retail pricing before any discounts.

Offer to Purchase

A formal proposal to buy a property or asset, typically including terms and price.

Offeree Dies

The cessation of an offer in contract law due to the death of the offeree, rendering the offer void.

Personal Representative

An individual legally authorized to manage the affairs of a deceased person's estate.