Assume That the Only Variable Resource Used to Produce Output

question 271

Multiple Choice

Assume that the only variable resource used to produce output is labor. Refer to the provided table. Diminishing marginal returns set in with the addition of the

• A) first unit of labor.
• B) second unit of labor.
• C) third unit of labor.
• D) fourth unit of labor.

---

Definitions:

Activity Variance

The difference between the budgeted amount of an activity and its actual cost or output.

Cost Formula

An equation used to calculate the total cost of producing goods or services by accounting for both fixed and variable costs.

Plane Operating Costs

Expenses associated with the operation of an aircraft, including fuel, maintenance, crew salaries, and insurance.

Passengers

Passengers refer to individuals who travel in a vehicle but are not directly involved in the vehicle's operation, often regarded in contexts such as public transportation, airlines, and automobiles.