At the End of 2018, Hargreaves Company Implemented a New

question 116

Multiple Choice

At the end of 2018, Hargreaves Company implemented a new labor process and redesigned its product with the expectation that input usage efficiency would increase. Now, at the end of 2019, the president of the company wants an assessment of the changes on the company's productivity. The data needed for the assessment are as follows: $\begin{array}{lrr}&2018&2019\\\text { Output } & 66,000 & 85,000 \\\text { Output prices } & \$ 12 & \$ 14 \\\text { Materials (lbs.) } & 24,800 & 25,550 \\\text { Materials unit price } & \$ 5 & \$ 7\\\text { Labor (hrs.) } & 25,000 & 30,875 \\\text { Labor rate per hour } & \$ 9 & \$ 9.50 \\\text { Power (kwh) } & 12,280 & 18,955 \\\text { Price per kwh } & \$ 4 & \$ 4.50\end{array}$
What is the partial operational measure for materials for 2018? (Round the answer to two decimal places.)

• A)2.04
• B)3.33
• C)2.66
• D)1.63

Identify the point where marginal product equals average product.

Understand the implications of the law of diminishing returns on productivity and output.

Understand the graphical representation and interpretation of production functions, including total product curves.

Understand and explain various cognitive biases and their impact on decision making.

---

Definitions:

Ethical Understanding

The capacity to comprehend moral principles, differentiate between right and wrong, and make decisions based on ethical considerations.

Comprehensive Guidelines

Detailed and thorough instructions or principles designed to guide actions or standards in specific areas.

Longitudinal

A type of study or analysis that follows the same subjects over a period of time, observing changes or developments.

Cross-sectional

A research method that analyzes data collected from a diverse population at a single point in time.