Consider the Following Production and Cost Schedule for a Firm

question 80

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. $$\begin{array} { | c | c | c | } \hline \begin{array} { c } \text { Total Numb er of } \\\text { Units of theF actor }\end{array} & \begin{array} { c } \text { Total Number of } \\\text { Units of Output }\end{array} & \begin{array} { c } \text { Price per Unit } \\\text { of Output }\end{array} \\\hline 10 & 20 & \$ 10 \\\hline 11 & 44 & \$ 10 \\\hline 12 & 64 & \$ 10 \\\hline 13 & 78 & \$ 10 \\\hline 14 & 84 & \$ 10 \\\hline 15 & 86 & \$ 10 \\\hline\end{array}$$ TABLE 13- 1
-Refer to Table 13- 1.Diminishing marginal returns are present for which units of the factor of production?

• A)11th unit only
• B)10th unit only
• C)13th unit only
• D)12th unit only
• E)all units shown in the table

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Definitions:

Liquidation

Liquidation is the process of bringing a business to an end and distributing its assets to claimants, often preceding dissolution.

Corporate Assets

Property, both tangible and intangible, owned by a corporation and used in its operations to generate revenue.

Creditors

Individuals or entities that are owed money by debtors, usually arising from contractual agreements, and have the legal right to pursue payment.

Corporate Name

The legal name under which a corporation is registered to conduct business.