Answer the Question on the Basis of the Following Output

question 4

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. Average product is at a maximum when

• A)two worker(s)is/are hired.
• B)five worker(s)is/are hired.
• C)six worker(s)is/are hired.
• D)four worker(s)is/are hired.

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Definitions:

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and salaries of non-direct labor, that cannot be directly tied to specific product units.

Insurance Expense

Insurance expense is the cost incurred by a company to obtain coverage against risks, reported as a non-operating expense.

Property Tax

Taxes levied by local governments based on the assessed value of real estate property owned.

Accounts Receivable

An asset, which is a claim against the customer created by selling merchandise or services on credit.