Table 18-8 The Following Table Shows the Production Function for a Particular

question 44

Multiple Choice

Table 18-8
The following table shows the production function for a particular business. The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis.

-Refer to Table 18-8.Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day.What is the value of the marginal product of labor for the fourth worker?

• A) $200
• B) $1,000
• C) $6,400
• D) $32,000

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Definitions:

Return On Assets

A measure of a company's profitability, indicating how efficient it is at using its assets to generate earnings.

Statement Of Cash Flows

A report detailing how shifts in income and balance sheet figures impact cash and its equivalents.

Cash Balance

The amount of cash or cash equivalents that a company or individual has available at any given time.

Common-Size Statement

A common-size statement is a financial statement in which each line item is expressed as a percentage of a certain figure for the purpose of comparison and analysis, such as revenues in an income statement.