Consider the Following Table for a Firm TABLE 13- 2
-Refer to Table 13- 2

question 97

Multiple Choice

Consider the following table for a firm.The first column shows the number of units of a variable factor of production employed by the firm. $$\begin{array} { | c | l | } \hline \begin{array} { c } \text { Total Number of } \\\text { Units of the Factor }\end{array} & \begin{array} { c } \text { Total Number of } \\\text { Units of Output }\end{array} \\\hline 2 & 100 \\\hline 3 & 110 \\\hline 4 & 128 \\\hline 5 & 148 \\\hline 6 & 162 \\\hline 7 & 170 \\\hline 8 & 166 \\\hline\end{array}$$ TABLE 13- 2
-Refer to Table 13- 2.Suppose this firm is a perfect competitor and faces a given price of the product equal to $10 per unit.The marginal revenue product of the 3rd unit of the factor is

• A)$1000.
• B)$30.
• C)$110.
• D)$1100.
• E)$100.

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Definitions:

Transferred-In Costs

Costs associated with units of product moved from one production process to another in the manufacturing cycle.

Prior Processing Department

A section within a manufacturing facility where raw materials undergo initial stages of processing before moving to subsequent phases of production.

Conversion Costs

The total expenses of manufacturing overhead and direct labor required to transform raw materials into completed products.

Assembly Department

A division within a manufacturing plant where components are assembled into final products.