The Application of Mechanical and Human Efforts to Either People

question 51

Multiple Choice

The application of mechanical and human efforts to either people or objects to provide intangible benefits to customers is known as a(n)

• A) issue.
• B) experience.
• C) idea.
• D) good.
• E) service.

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Definitions:

Average Variable Cost

The total variable costs (costs that change with production volume) divided by the number of units produced.

Average Product of Labor

The output produced, on average, by one unit of labor, such as one worker or one hour of work.

Marginal Product of Labor

The additional output produced as a result of employing one more unit of labor.