A Soft Drink Factory Employs Seven Workers and Produces 500

question 112

Multiple Choice

A soft drink factory employs seven workers and produces 500 bottles of soda a day. When the company reduces the workforce to six workers output decreases to 450 bottles a day. The seventh worker:

• A)had a marginal product of 50 bottles of soda.
• B)caused average product to fall.
• C)had a lower marginal product than the sixth worker.
• D)All of these are correct.

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Definitions:

Changes in Equity

Adjustments in a company’s equity during a specific period due to factors like earnings, dividends, or changes in share capital.

Total Assets

Total Assets refer to the sum of all current and non-current assets owned by a company, representing its resources with economic value.

Canada Revenue Agency

The federal agency responsible for the administration of tax laws for the Government of Canada, as well as for various social and economic benefit and incentive programs.

Basic Accounting Equation

An equation representing the relationship between a company's assets, liabilities, and equity (Assets = Liabilities + Equity).