The Per-Worker Production Function Is ________

question 70

Multiple Choice

The per-worker production function is ________.

• A)upward-sloping
• B)downward-sloping
• C)vertical
• D)horizontal

---

Definitions:

Fixed Costs

Expenses that do not change in relation to the volume of production or sales, such as rent, salaries, and insurance.

Operating Leverage

A measure of the relative mix of a business’s variable costs and fixed costs, computed as contribution margin divided by operating income.

Highly Automated Industries

Sectors where machines and advanced technologies preponderantly perform production and operational processes, reducing human intervention.

Break-even Point

The point at which total revenues equal total costs and expenses, leaving no net loss or gain.