The Relationship Between Labor Usage and Output at the Local

question 82

Multiple Choice

The relationship between labor usage and output at the local coffee shop is summarized in the table below.The price of a cup of espresso is $1.25 and no other inputs are required. $\begin{array}{cc}\begin{array}{c}\text { Labor } \\ \underline {\text { Input }}\end{array} & \begin{array}{c}\text { Cups of } \\ \underline {\text { espresso }}\end{array} \\ 0 & \text { 0 } \\1 & 25 \\2 & 45 \\3 & 60 \\4 & 70 \\5 & 75\end{array}$
The marginal product of the fourth worker is _______.

• A) 70
• B) 60
• C) 17.5
• D) 10

---

Definitions:

Income Statement

A financial document that shows a company's revenues and expenses over a specific period, culminating in the net income or loss for that period.

Balance Sheet

A financial statement that presents the financial position of a company at a specific point in time, showing assets, liabilities, and shareholders' equity.

Inventory Costing Method

A method used to assign costs to inventory items, such as FIFO (First-In, First-Out), LIFO (Last-In, First-Out), or weighted average cost.

LIFO

Last In, First Out, an inventory valuation method where the most recently produced or acquired items are sold first, affecting the cost of goods sold and inventory value.