Refer to the Following:
the Table Below Shows a Competitive $\begin{array}{ll} \text {Units of Labor }& \text {Units of Output }\\3 & 370 \\4 & 490 \\5 & 570 \\6 & 600 \\7 & 620\end{array}$

question 87

Multiple Choice

Refer to the following:
The table below shows a competitive firm's short-run production function. Labor is the firm's only variable input, and market price for the firm's product is $2 per unit.
$\begin{array}{ll} \text {Units of Labor }& \text {Units of Output }\\3 & 370 \\4 & 490 \\5 & 570 \\6 & 600 \\7 & 620\end{array}$
-How much does the fifth unit of labor add to the firm's total revenue?

• A) $160
• B) $80
• C) $60
• D) $40
• E) $10

---

Definitions:

Master Budget

An integrated set of operating and financial budgets for a period of time.

Flexible Budgeting

A budgeting process that allows for adjustments based on changes in the volume of activity or other factors.

Flexible Budgeting

A financial planning tool that adjusts budgets based on changes in actual activity levels, allowing for variable cost adjustment.

Operating Data

Information collected on the performance and efficiency of day-to-day operations within a company.