The Marginal Physical Product of Labor for the Most Recent

question 36

Multiple Choice

The marginal physical product of labor for the most recent worker hired by Ajax is 286. If Ajax were to hire an additional worker we would expect the marginal physical product of labor to

• A) remain at 286.
• B) be below 286.
• C) be above 286 by a small amount.
• D) be above 286 by a large amount.

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Definitions:

Accounts Receivable Balance

The total amount of money owed to a company by its customers for goods or services provided on credit, yet to be paid.

Accounts Receivable Period

The average number of days it takes for a business to collect payments owed by its customers.

Credit Sales

Sales made by a business for which payment is received at a later date, extending credit to the buyer.

Cash Collections

are the payments received by a company from its customers in exchange for goods or services sold on credit.