The Following Table Shows Total Output Produced by Different Units

question 75

Multiple Choice

The following table shows total output produced by different units of capital.Table 14.3
The marginal revenue product of a resource is the product of the marginal product of the resource and the marginal revenue.
-In Table 14.3, if there exists perfect competition in the capital market and the price per unit of capital is ten times the price of the product, the marginal factor cost at the profit maximizing level of employment is:

• A)$60.
• B)$50.
• C)$40.
• D)$30.
• E)$20.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected cost at standard prices.

Direct Materials

The raw materials that are directly traceable to the production of a specific good or service.

Purchased Liters

The quantity, in liters, of a liquid product that has been bought by a company or individual.

Standard Costing System

An accounting system that estimates the cost of products by assigning predefined costs to materials, labor, and overhead.