The Following Table Shows Total Output Produced by Different Units

question 11

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.
-Consider a perfectly competitive firm that produces computers. Each additional worker at this firm can produce four computers. Calculate the marginal factor cost if the computers are sold for $1,000 each, and the firm is maximizing profit. (Assume that marginal revenue product is the product of marginal product of the input and the marginal revenue of the firm.)

• A)$4,000
• B)$500
• C)$1,000
• D)$1,500
• E)$400

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Definitions:

Planned Order Releases

Instructions to start the manufacture, ordering, or delivery of items in a specific period, in accordance with the production schedule.

Projected Output Rate

The estimated rate at which a system or process is expected to produce goods or complete tasks over a specific period.

Inventory Holding Costs

The expenses associated with storing unsold goods, including costs related to warehousing, insurance, depreciation, and opportunity cost.

Lot-For-Lot

An inventory ordering strategy that matches the exact quantity needed for production, minimizing holding costs.