Which of the Following Is an Example of Direct Labor

question 95

Multiple Choice

Which of the following is an example of direct labor cost for a cell phone manufacturer?

• A) cost of oil lubricants for factory machinery
• B) cost of wages of assembly worker
• C) salary of plant supervisor
• D) cost of phone components

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Definitions:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, often seen as a measure of producer welfare.

Consumer Surplus

The disparity between the cost consumers are prepared to pay for a good or service and the cost they actually encounter.