When F(k)is Drawn on a Graph with Increases in K

question 75

Multiple Choice

When f(k) is drawn on a graph with increases in k noted along the horizontal axis,the slope of the line denotes:

• A) output per worker.
• B) output per unit of capital.
• C) the marginal product of labour.
• D) the marginal product of capital.

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods or services.

Machine-Hours

A measure of the amount of time a machine is operated, used in allocating manufacturing costs based on machine usage.

Underapplied Overhead

A condition where the allocated manufacturing overhead costs are less than the actual overhead costs incurred.

Overapplied Overhead

A situation where the allocated manufacturing overhead cost exceeds the actual overhead incurred.