The Following Table Shows Output Per Hour Produced by the Different

question 35

Multiple Choice

The following table shows output per hour produced by the different units of labor.Table 14.1
The marginal revenue product of a resource is equal to the product of the marginal product of an input and marginal revenue.
-After hiring 151 units of the variable input (say labor) a firm determines the marginal fixed cost (MFC) to be $0.33 and the marginal revenue product (MRP) to be $0.30. The firm should:

• A)increase its production.
• B)increase the use of labor.
• C)decrease the use of labor.
• D)produce 151 units.
• E)produce 33 units of the output.

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Definitions:

Piecework Rates

A compensation system where employees are paid a fixed rate for each unit produced or action performed, rather than receiving an hourly wage.

Standardized Jobs

Positions characterized by uniform tasks, requirements, and qualifications across different settings or organizations.

Retention Bonuses

Financial incentives offered to employees to encourage them to stay with the company for a specific period.

One-Time Incentives

Financial or other rewards given on a single occasion to motivate or reward certain behavior, often used in a business context.