The Slope of a Ray from the Origin to the Total

question 25

Multiple Choice

The slope of a ray from the origin to the total product curve measures _____.

• A)the marginal rate of technical substitution
• B)the marginal product of the variable factor
• C)the average product of the variable factor
• D)the maximum output

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Definitions:

Plantwide Predetermined

A single overhead rate calculated for an entire production facility based on estimated costs and activity levels.

Machine-Hours

A measure of the amount of time a machine is operated, used in allocating machine costs to units of production.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual products or job orders based on a certain activity base, such as machine hours or labor hours.

Machine-Hours

A unit of measure that represents the operational time of a machine, used in allocating manufacturing overhead based on the time machines are run.