Suppose a Certain Firm Is Able to Produce 110 Units

question 233

Multiple Choice

Suppose a certain firm is able to produce 110 units of output per day when 12 workers are hired. The firm is able to produce 120 units of output per day when 13 workers are hired, holding other inputs fixed. The marginal product of the 13th worker is

• A)4 units of output.
• B)5 units of output.
• C)10 units of output.
• D)120 units of output.

Understand the allocation of service department costs to production departments.

Comprehend the challenges and outcomes of acquiring and charging for large central systems.

Analyze the profitability and strategic decision-making through cost allocations in specific industries.

Recognize the impact of cost allocation on resource utilization and managerial decisions.

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Definitions:

Oral Agreement

An oral agreement is a contract whose terms have been agreed upon by speaking rather than in writing, which can be legally binding, depending on the context and jurisdiction.

Consideration

The value (such as money, services, or goods) that is promised to be transferred in a contract, creating a binding obligation.

Merchant Customer

A consumer who has a commercial relationship with a business or merchant, typically involving the purchase of goods or services.

Dispatch

The act of sending something or someone to a specific destination or for a certain purpose.