Consider the Following Production and Cost Schedule for a Firm

question 35

Multiple Choice

Consider the following production and cost schedule for a firm.The first column shows the number of units of a variable factor of production employed by the firm.
TABLE 13-3
-Refer to Table 13-3.The total revenue obtained if the 7th unit of the factor of production is hired is

• A)$160.
• B)$180.
• C)$192.
• D)$202.
• E)$210.

---

Definitions:

Law of Diminishing Returns

An economic principle stating that adding more of one factor of production, holding all else constant, will at some point yield lower per-unit returns.

Dramatic Yields

Significant increases in productivity, often used in the context of agricultural output resulting from new technologies or methods.

Pesticides

Chemicals used to kill or manage the population of pests, including insects, weeds, and fungi, that threaten agricultural production and public health.

Intercropping

The agricultural practice of growing two or more crops in proximity to promote mutual benefits such as pest control and improved productivity.