Answer the Question on the Basis of the Following Output

question 441

Multiple Choice

Answer the question on the basis of the following output data for a firm. Assume that the amounts of all nonlabor resources are fixed. The marginal product of the fourth worker is

• A)57.5 units of output.
• B)60 units of output.
• C)70 units of output.
• D)90 units of output.

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Definitions:

Continuous Process

A manufacturing or production process that operates without interruption, typically in industries where the product is produced in a flow rather than discrete units.

Applied Overhead

The portion of manufacturing overhead costs allocated to individual units of production based on a predetermined rate.

Direct Labor

Direct labor refers to the wages and other costs for labor that is directly involved in the production of goods, such as assembly line workers.

Continuous Process

A production process where the input materials are continuously fed and processed to produce output, typically seen in industries like chemicals and petroleum.