The Following Data Show the Total Output for a Firm

question 135

Multiple Choice

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital.When answering the questions,you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100.
TABLE 7-4
-Refer to Table 7-4.Marginal product of labour begins decreasing with the ________ unit of labour hired.Average product of labour begins decreasing with the ________ unit of labour hired.

• A)4th; 3rd
• B)3rd; 2nd
• C)2nd; 3rd
• D)3rd; 4th
• E)4th; 5th

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Definitions:

Excess Funds

Refers to the surplus money a business has after all its operational costs, taxes, and obligations have been met, which can be invested or saved for future use.

Growth Strategies

Approaches and methods businesses use to achieve higher levels of market share, revenue, and profitability.

Market Penetration

A strategy aiming to increase sales of existing products or services within current markets, often by gaining a larger market share.

Evaluate Performance

The process of assessing the efficiency and effectiveness of actions or operations, typically involving comparison to established standards or benchmarks.