Suppose That the Twenty-Third Worker at a Distribution Center for an Online

question 179

Multiple Choice

Suppose that the twenty-third worker at a distribution center for an online retailer generates a marginal product equal to eight boxes of output and that the average product of the twenty-third worker employed is five boxes per worker. We can conclude that

• A) average product is rising.
• B) marginal product is falling.
• C) average product is neither rising nor falling.
• D) marginal product is neither rising nor falling.

Identify different types of business locations and their associated advantages and disadvantages.

Recognize the role of competition and customer base in selecting a business location.

Comprehend the significance of selecting a suitable layout for manufacturing and service businesses to optimize operations.

Understand the role and types of intermediaries in distribution channels.

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Definitions:

MR = MC

An economic principle stating that optimal output level is reached when marginal revenue equals marginal cost, guiding profit-maximizing strategies for firms.

Economic Losses

Refers to the decrease in financial wealth of an entity, which can occur through various means such as business operations, market downturns, or unforeseen events leading to financial damage.

AVC

Average Variable Cost, which is the total variable costs divided by the quantity of output produced.

AVC

Average Variable Cost, which is calculated by dividing the variable costs by the quantity of output produced.