An Improvement in Technology That Allows Workers to Process Twice

question 36

Multiple Choice

An improvement in technology that allows workers to process twice as many insurance forms in an hour than before will result in ____

• A)an increase in the employment of labor because the marginal product of labor has decreased.
• B)an increase in insurance premiums.
• C)a decrease in the employment of labor because the marginal product of labor has decreased.
• D)an increase in the employment of labor because the marginal revenue product of labor has increased.
• E)a decrease in the employment of labor because its marginal revenue product has increased.

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Definitions:

Overhead Volume Variance

A metric used to measure the difference between the budgeted and actual volume of production, affecting the budgeted overhead costs.

Controllable Variance

The difference between actual and expected outcomes that can be directly managed or influenced by a responsible party.