During the Black Death, with Fewer Workers Available to Farm

question 193

True/False

During the Black Death, with fewer workers available to farm the land, an additional unit of land produced less additional output.

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Definitions:

Contribution Margin

What’s left of the sales proceeds once variable expenditures are taken out.

Direct Labor

The labor costs directly attributed to the production of goods or services; it includes wages paid to workers physically making a product.

Constrained Resource

A limited resource in a production process that can restrict the company's ability to produce goods, impact scheduling, and ultimately affect throughput.

Current Profitability

A measure of how much profit a company is generating at the current time, often used to assess financial health.