Consider the Following Production and Cost Schedule for a Firm

question 8

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. $$\begin{array} { | c | c | l | } \hline \begin{array} { c } \text { Total Number of } \\\text { Units of the Factor }\end{array} & \begin{array} { c } \text { Total Number of } \\\text { Units of Output }\end{array} & \begin{array} { l } \text { Price per Unit } \\\text { of Output }\end{array} \\\hline 10 & 20 & \$ 10 \\\hline 11 & 44 & \$ 10 \\\hline 12 & 64 & \$ 10 \\\hline 13 & 78 & \$ 10 \\\hline 14 & 84 & \$ 10 \\\hline 15 & 86 & \$ 10 \\\hline\end{array}$$ TABLE 13- 1
-Suppose that the last unit of a factor of production employed has a marginal product of 12.The factor's price is $8,and the product's competitive market price is $6.This factor's marginal revenue product is

• A)$96.
• B)$72.
• C)$6.
• D)$36.
• E)$48.

---

Definitions:

External Failure Costs

Costs that occur after a product has been delivered to the customer and a defect has been found, including returns, repairs, and warranty claims.

Incentive Compensation

A form of payment designed to motivate and reward employees beyond their regular pay, based on their performance.

Balanced Scorecard Performance Measures

A strategic planning and management system used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Customer Measures

Metrics or indicators used to evaluate the satisfaction, loyalty, retention, and acquisition of customers within a business.