Table 9.1 Table 9.1 Shows the Technology of Production at the Matsuko's

question 102

Multiple Choice

Table 9.1

Table 9.1 shows the technology of production at the Matsuko's Mushroom Farm for the month of May 2011.
-Refer to Table 9.1.What is the average product of labour when the farm hires 5 workers?

• A)4 pounds
• B)10.8 bushels
• C)38.2 pounds
• D)54 pounds

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Definitions:

Fixed Costs

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance.

Opportunity Costs

The value of the next best alternative foregone as a result of making a decision.

Production Capacity

The maximum amount of goods or services a facility can produce over a given period under normal working conditions.

Widgets

A generic term typically used to describe any product or manufactured item in discussions or examples about economic theory, manufacturing, or sales.