Refer to the Diagram, Where Variable Inputs of Labor Are

question 185

Multiple Choice

Refer to the diagram, where variable inputs of labor are being added to a constant amount of property resources. The total output of this firm will cease to expand

• A)if a labor force in excess of Q₁ is employed.
• B)if a labor force in excess of Q₂ is employed.
• C)if a labor force in excess of Q₃ is employed.
• D)only if the marginal product curve becomes negative at all levels of output.

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Definitions:

Direct Labor-Hours

Full count of working hours by employees in direct connection with the production process.

Job Cost Sheet

A document that records the materials, labor, and manufacturing overhead costs assigned to each individual job.

Machine-Hours

A unit of measure reflecting the amount of time a machine is operated, used in cost accounting and operational management to allocate machine costs to products.

Direct Labor-Hours

The total hours of work directly contributing to the production of goods or services.