Suppose Billy Bud's Bucking Broncos Employs 20 Workers at a Daily

question 76

Multiple Choice

Suppose Billy Bud's Bucking Broncos employs 20 workers at a daily wage of $60 each. The average product of labor is 30 bucking broncos per day; the marginal product of the last worker is 12 bucking broncos per day; and total fixed cost is $3,600 for equipment. What is the marginal cost of the last bucking bronco produced?

• A) $0.20
• B) $5.00
• C) $240.00
• D) $720.00

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Definitions:

Factoring Procedures

The financial transaction where a business sells its accounts receivable to a third party to get immediate cash, minus a fee.

Short-term Financing

This refers to financial obligations or loans that are due for repayment within a period of one year or less, often used for managing daily business operations.

Yield Curve

A graphical representation showing the relationship between the yield on securities with differing terms to maturity, typically for government bonds.

Working Capital

The difference between a company’s current assets and current liabilities, indicating short-term financial health.