The Following Table Shows the Total Output Produced by Different

question 91

Multiple Choice

The following table shows the total output produced by different units of a resource.Assume that the resource and output markets are both perfectly competitive.The equilibrium price of the resource is $15.00, and the equilibrium price of the product is $0.50. Table 28.2
Marginal revenue product (MRP) of a resource is the product of the marginal product of the resource and the marginal revenue.
Refer to Table 28.2.How many units of the resource will a profit-maximizing firm hire?

• A)Two labor hours
• B)Between two and three labor hours
• C)Between three and four labor hours
• D)More than four labor hours
• E)Three labor hours

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Definitions:

Average Inventory

The mean value of inventory held by a business over a specific period of time, used to evaluate the investment in inventory against sales performance.

Ending Inventory

The complete valuation of items that are up for sale at the end of a financial accounting period.

Beginning Inventory

The value of all the inventory held by a company at the start of an accounting period, before any purchases or sales are made.

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a specific period, indicating efficiency in managing stock.