Table 3.1 -Referring to Table 3.1, Which Is of the Following Answers

question 26

Multiple Choice

Table 3.1

-Referring to Table 3.1, which is of the following answers is INCORRECT? If pots sell for $20 each then

• A) the marginal revenue product of labor of the second worker is $260.
• B) the marginal product of the third worker is five pots.
• C) the marginal revenue from selling the eighteenth pot is $20.
• D) the marginal revenue product of labor equals the marginal product of labor multiplied by the additional revenue that is received per unit of output.

---

Definitions:

Variable Costs

Costs that vary directly with the level of production or output, such as materials and labor.

Contribution Margin

The selling price per unit, minus the variable cost per unit, used to determine the profitability of products or services.

Fixed Costs

Business expenses that remain constant regardless of the level of goods or services produced.

Fixed Costs

Costs that do not change with the level of production or sales over a certain period, such as rent or salaries.