-Employees at Bank of America Are Good at Providing Banking

question 318

Multiple Choice

-Employees at Bank of America are good at providing banking services and workers at Ben & Jerry's are good at making ice cream. The figure above shows the marginal cost and marginal benefit curves for ice cream. If 1 million gallons of ice cream are being produced

• A) the cost an additional gallon of ice cream is more than people think it is worth.
• B) more banking services should be produced.
• C) the marginal cost of an additional gallon of ice cream is greater the value people place on it.
• D) people value an additional gallon of ice cream more highly than its cost of production.

Interpret production functions and calculate marginal and average product of labor.

Evaluate the factors contributing to labor productivity differences among economies.

Identify factors that do not directly contribute to the productivity of labor.

Understand the relationship and differences between average product and marginal product of labor.

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Definitions:

Patent Rights

Legal entitlements granted to inventors, giving them exclusive rights to use, make, and sell their inventions for a certain period.

Depletion Expense

The systematic allocation of the cost of natural resources over their expected productive life.

Drilling Rights

Legal permissions granted to an individual or company to explore and extract resources from the land.

Adjusting Entry

At the close of an accounting cycle, records are made in the accounting books to apportion earnings and expenditures to the actual period of occurrence.