Increases in the Marginal Product of Labour Result from

question 121

Multiple Choice

Increases in the marginal product of labour result from

• A)the use of new technology.
• B)hiring more efficient workers.
• C)the division of labour and specialisation.
• D)increasing the usage of all inputs.

Understand and apply the concept of margin of safety and its importance in business.

Compute and analyze contribution margin and contribution margin ratio for single and multiple product companies.

Calculate break-even points in units and dollars for both single and multiple product scenarios.

Understand and calculate operating leverage and its impact on company profits against sales changes.

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Definitions:

Economies of Scope

Cost advantages that result from a company offering a range of products rather than specializing in just one.

By-product Synergy

The practice of finding valuable uses for waste or by-products generated during the manufacturing process, thereby reducing waste and potentially increasing efficiency and profitability.

Horizontal Brand Extension

A strategy where a brand introduces new products in the same product category.

Particle Board

An engineered wood product made from wood chips, sawmill shavings, or even sawdust, and a synthetic resin or other suitable binder, which is pressed and extruded.