Use the Following Table to Answer the Question Below: the Amount

question 8

Multiple Choice

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.
Diminishing marginal productivity

• A)occurs when the marginal product curve begins to slope downward.
• B)means that adding one more unit of the variable input will reduce total product.
• C)occurs eventually because each additional unit of the variable unit has,on average,fewer units of the fixed input with which to work.
• D)both a and c
• E)both b and c

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Definitions:

Profit Center

A business unit or department within an organization that is treated as a separate entity for the purpose of calculating its profitability.

Transfer Prices

Prices charged for the sale of goods or services between divisions or subsidiaries within the same company.

Variable Production Costs

Costs that vary in direct proportion to changes in production volume or levels, such as materials and labor.

Special Parts

Unique or custom components used in manufacturing processes or product assembly that are not commonly available or require specific production.