Suppose a Certain Firm Is Able to Produce 165 Units

question 10

Multiple Choice

Suppose a certain firm is able to produce 165 units of output per day when 15 workers are hired. The firm is able to produce 176 units of output per day when 16 workers are hired (holding other inputs fixed) . Then the marginal product of the 16th worker is

• A) 10 units of output.
• B) 11 units of output.
• C) 16 units of output.
• D) 176 units of output.

Evaluate the profitability of using existing resources versus obtaining new resources.

Understand the role of sunk costs, opportunity costs, and avoidable costs in financial decision-making.

Determine the optimal product mix in situations of limited resources using contribution margin analysis.

Assess the financial implications of discontinuing a product, segment, or department.

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Definitions:

Joint Venture

A business arrangement in which two or more parties agree to pool resources for the purpose of accomplishing a specific task.

Partnership

A legal arrangement where two or more persons agree to share the profits of a business which they run together.

Malpractice

Failure of a professional to perform their duties to the required standard of care, resulting in harm to their client or patient.

Corporation

A legal entity recognized by law as separate from its owners, with rights to own property, sue or be sued, and conduct business.