Which of the Following Describes How Output Changes in the Short

question 169

Multiple Choice

Which of the following describes how output changes in the short run? Because of specialization and the division of labor, as more workers are hired,

• A)output will first increase at an increasing rate, then output will increase at a decreasing rate.
• B)output will first decrease at an increasing rate, then increase at a decreasing rate.
• C)the marginal product of labor will first decrease, then increase at a decreasing rate.
• D)the marginal product of labor will first be negative and then will be positive.

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory value based on the average cost of all units available for sale during the period.

Materials Cost

The cost of the raw materials used in the production of goods.

Weighted-Average Method

An inventory costing method where costs of goods sold and ending inventory consist of a weighted average of all purchases and manufactured goods during the period.

Cost Reconciliation Report

A financial report that explains the differences or reconciles the variations between the cost of beginning inventory plus purchases and the cost of goods sold.