If Diminishing Marginal Returns Have Already Set in for Golden

question 182

Multiple Choice

If diminishing marginal returns have already set in for Golden Lark Woodworks,and the marginal product of the sixth carpenter is eight chairs,what is the marginal product of the seventh carpenter?

• A) Negative
• B) Less than eight chairs
• C) More than eight chairs
• D) Zero

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Definitions:

Materials Price Variance

The difference between the actual cost of materials purchased and the expected cost, based on standard prices.

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on the hours worked.

Labor Rate Variance

A specific type of variance that measures the difference between the actual hourly wage paid to workers and the standard rate expected.

January

The first month of the year in the Gregorian calendar.