Bluebird Mfg

question 89

Multiple Choice

Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sells 75,000 units at $7.00 each. This level represents 80% of its capacity. These bird feeders would be marketed under the wholesaler's name and would not affect Bluebird's sales through its normal channels. Production costs for these units are $3.50 per unit, which includes $2.25 variable cost and $1.25 fixed cost.
-If Bluebird accepts this additional business, the effect on net income will be:

• A) $45,000 increase.
• B) $7,500 decrease.
• C) $11,250 increase.
• D) $33,750 increase.
• E) $33,750 decrease.

Associate changes in the demand and supply of labor with changes in the equilibrium wage and quantity of labor.

Calculate the value of the marginal product of labor and understand its role in employment decisions.

Understand the impact of technological changes on labor demand and labor productivity.

Assess the effects of government policies, such as minimum wage laws, on labor markets and firm decisions.

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Definitions:

Creative Intelligence

The capacity to solve novel problems and come up with original and appropriate solutions.

Experiential Intelligence

The ability to use one's own experiences effectively for learning and problem-solving, often related to practical intelligence.

Componential Intelligence

One aspect of triarchic theory of intelligence, focusing on analytical abilities such as problem-solving and logical reasoning.

Altruistic Intelligence

The cognitive and emotional capacity to understand and act in the interest of others' welfare, above one's own interests.