Table 18-2 The Following Table Shows the Production Function for a Particular

question 35

Multiple Choice

Table 18-2
The following table shows the production function for a particular business.The numbers represent the various labor and output combinations the firm may choose for its output on a daily basis.

-Refer to Table 18-2.Suppose this firm charges a price of $5 per unit of output and pays workers a wage equal to $160 per day.What is the value of the marginal product of labor for the fourth worker?

• A) $200
• B) $1,000
• C) $6,400
• D) $32,000

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Definitions:

Machine Operator's Wages

The compensation paid to workers who operate machinery, typically categorized as direct labor costs in manufacturing.

First-In-First-Out (FIFO)

An inventory valuation method where the oldest inventory items are used up or sold first.

Work in Process

This term refers to the materials, labor, and overhead costs for products that are in the production process but are not yet complete.

Job Cost Sheet

A form prepared for a job that records the materials, labor, and manufacturing overhead costs charged to that job.