An Increase in Technology Will Cause a Marginal Revenue Product

question 103

Multiple Choice

An increase in technology will cause a marginal revenue product of labor curve to

• A) be unaffected because the productivity of labor has not changed.
• B) shift to the left.
• C) shift to the right.
• D) become more inelastic.

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Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.

Financial Statements

The comprehensive reports that summarize a company's financial performance, position, and cash flows over a specific period.

Current Ratio

An assessment tool that determines an enterprise's capability to settle short-term due debts by dividing its immediate assets by its immediate liabilities.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, offering a snapshot of its financial position.