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A fiRm's Output Increases from 1760 Units to 1890 Units

question 23

Multiple Choice

A firm's output increases from 1760 units to 1890 units when labour employed increases from 147 to 148 workers. The marginal product of labour is _____ units.


Definitions:

Absorption Costing

A method of accounting for all the costs associated with manufacturing a product, including all direct costs and fixed and variable overhead expenses.

Variable Costing

An accounting approach where only variable manufacturing costs are included in product costs, excluding fixed manufacturing overhead.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Absorption Costing

An accounting method that includes all manufacturing costs, both fixed and variable, in the cost of a product.

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