The Figure Below Shows a Per-Worker Production Function

question 48

True/False

The figure below shows a per-worker production function. Point C in the figure below represents the level of output per worker that is unattainable with current technology. 

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Definitions:

Relevant Cost

Costs that will be affected by a decision and will have an impact on the future.

Variable Production Cost

Charges that fluctuate in line with production levels, such as direct labor and materials used.

Split-off

A point in the production process where multiple products are derived from a common input, and separate paths of further processing or sale are identified.

Avoidable Fixed Production Cost

Fixed costs that can be eliminated if a particular product, service, or segment is discontinued.