Table 18-7 Harold Owns a Cranberry Bog in Which He Grows Cranberries

question 258

Multiple Choice

Table 18-7
Harold owns a cranberry bog in which he grows cranberries. Harold's farm is a competitive, profit-maximizing firm. Harold's production function is detailed in the table below.

-Refer to Table 18-7.If Harold pays his workers $80 per day and sells his cranberries for $5 per bushel,what is the value of the marginal product of the second worker?

• A) $80
• B) $400
• C) $6,400
• D) $32,000

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Definitions:

Direct Labor-Hours

The combined hours worked by staff directly partaking in the manufacturing activities.

Standard Hours Allowed

The amount of work hours allocated for the completion of a specific task, based on standard performance.

Materials Price Variance

The difference between the actual cost of materials purchased and the expected (standard) cost, indicating how material cost fluctuations affect production costs.

Quantity Standard

The expected or budgeted quantity regarding inputs or outputs, used as a performance measure or pricing basis.