Use the Following for Questions 37-43

question 219

Multiple Choice

Use the following for questions 37-43.
Exhibit: Total Product

-(Exhibit: Total Product) Hiring L₂ units of labor results in total product attaining a _______ and the marginal product of labor _______ .

• A) minimum; being equal to zero.
• B) maximum; being equal to zero.
• C) maximum; being positive
• D) minimum; falling, but still being positive.

---

Definitions:

Annual Demand

The total quantity of a product or service that is demanded over the course of a year.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Service Level

A measure of performance that represents the percentage of customer demands that are met without delay.

Lead Time

The timeframe between the initiation and completion of a process, such as from placing an order to its delivery.