Refer to the Data Provided in Table 10 -Refer to Table 10

question 153

Multiple Choice

Refer to the data provided in Table 10.1 below to answer the following question(s) .
Table 10.1 $$\begin{array}{l}\text { Total Labor Units } \quad \text { Total Product } \quad \text { Marginal Product of Price per }\\\begin{array} { c c c c } \text { (employees) } & \text { (T-shirts per day) } & \text { Labor (per day) } & \text { T-shirt } \\\hline 0 & 0 & - & - \\1 & 20 & 20 & \$ 5 \\2 & 50 & 30 & 5 \\3 & 75 & 25 & 5 \\4 & 95 & 20 & 5 \\5 & 110 & 15 & 5\end{array}\end{array}$$
-Refer to Table 10.1. If the payment to labor per day is $125, this T-shirt manufacturer is maximizing profits if he will hire ________ employees.

• A) two
• B) three
• C) four
• D) five

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Definitions:

Decentralization

The distribution of decision-making power and responsibility to lower levels within an organization.

Responsibility Accounting Reports

These are financial reports designed to track the financial performance of specific departments or units within an organization, emphasizing accountability and performance evaluation.

Lower-Level Managers

Managers who oversee the day-to-day operations within an organization, usually supervising entry-level employees.

Summary Report

A concise document that presents the main findings or results, often without detailed data.