-The Above Table Shows the Short- Run Total Product Schedule

question 102

Multiple Choice

-The above table shows the short- run total product schedule for the campus bookshop. When the bookshop hires the third employee,

• A) marginal product is at its maximum.
• B) both marginal and average product have already begun to decline.
• C) the bookshop has already begun to experience diminishing marginal returns, but average product is still rising.
• D) the bookshop is still experiencing increasing marginal returns.

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Definitions:

FOB Shipping Point

A term in shipping where the buyer assumes responsibility for the goods and shipping cost as soon as the goods leave the seller’s premises.

Freight Charges

Costs incurred for transporting goods from one place to another by sea, air, or land.

Trade Discount

A reduction in the listed price of goods or services offered by sellers to buyers in a commercial transaction.

Customer Discount

A reduction in the price of goods or services offered to customers, usually to encourage prompt payment or increase sales volume.