Table 13-3
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-On a 200-Acre Farm, a Farmer Is

question 254

Multiple Choice

Table 13-3
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$$\begin{array} { | c | c | c | c | c | } \hline \begin{array} { c } \text { Labor } \\\text { (Number of workers) }\end{array} & \begin{array} { c } \text { Output } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Fixed Cost } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Variable Cost } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { (Dollars) }\end{array} \\\hline 0 & 0 & 50 & 0 & 50 \\\hline 1 & 90 & 50 & 20 & 70 \\\hline 2 & 170 & 50 & 40 & 90 \\\hline 3 & 230 & 50 & 60 & 110 \\\hline 4 & 240 & 50 & 80 & 130 \\\hline\end{array}$$ ​
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-On a 200-acre farm, a farmer is able to produce 2,000 bushels of wheat when he hires 2 workers. He is able to produce 2,800 bushels of wheat when he hires 3 workers. Which of the following possibilities is consistent with the property of diminishing marginal product?

• A)The farmer is able to produce 3,360 bushels of wheat when he hires 4 workers.
• B)The farmer is able to produce 3,600 bushels of wheat when he hires 4 workers.
• C)The farmer is able to produce 3,800 bushels of wheat when he hires 4 workers.
• D)The farmer is able to produce 4,000 bushels of wheat when he hires 4 workers.

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Definitions:

Voucher

A document that serves as evidence of a business transaction and authorizes the recording of that transaction in an accounting system.

Debit Memo

A document or entry that records an adjustment or increases in an account, typically indicating a debtor owes more money to the creditor.

Bank Service Charges

Fees charged by banks for various account and transaction services provided to customers.

Bank Reconciliation

The process of matching and comparing figures from accounting records against those shown on a bank statement to ensure accuracy and consistency.