If 15 Workers Produce 100 License Plates, 16 Workers Produce

question 121

Multiple Choice

If 15 workers produce 100 license plates, 16 workers produce 120 license plates, and 17 workers produce 130 license plates, then

• A)diminishing marginal returns have not set in because the marginal product is positive
• B)the marginal product of the seventeenth worker is 130
• C)diminishing marginal returns must begin with the sixteenth worker
• D)the marginal product of the sixteenth worker is greater than the marginal product of the seventeenth worker
• E)the marginal product of the fifteenth worker must be 20

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Definitions:

Expenses

The money spent or costs incurred in an entity's efforts to generate revenue, representing the cost of doing business.

Trial Balance

A financial report that lists the balances of all ledgers in an account to check the mathematical accuracy of bookkeeping entries.

Cash Salary

Compensation for services rendered by an employee or contractor that is paid in the form of immediately available funds rather than non-cash benefits.

Accounts Receivable

Funds owed to a company by customers who have purchased goods or services on credit.