Austin's Total Fixed Cost at the Bakery Is $3,600 a Month.Austin

question 216

Multiple Choice

Austin's total fixed cost at the bakery is $3,600 a month.Austin employs 20 workers and pays each worker $8 an hour.The marginal product of the twentieth worker is 12 iced cupcakes an hour.What is the marginal cost of the last cupcake produced by the last worker Austin hired?

• A)$0.26
• B)$0.66
• C)$3.81
• D)$8

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Definitions:

Contingency Approach

A management theory that suggests the best way to manage an organization depends on the specific circumstances and variables present.

Situational Management

Situational management is an adaptive leadership approach that advocates for adjusting management style and strategies based on the specific circumstances and needs of the situation.

McGregor

Douglas McGregor developed the Theory X and Theory Y concept, representing two opposing perceptions of employee motivation and behavior.

Theory X

A management theory that assumes employees are inherently lazy and will avoid work if they can, suggesting the need for strict oversight and control.