Assuming That Labor Is the Only Variable Input, If Society

question 57

Multiple Choice

Assuming that labor is the only variable input, if society values a good ________ it costs firms to hire the workers to produce that good, the good ________ be produced.

• A) equal to what; will not
• B) less than; will
• C) more than; will not
• D) less than; will not

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Definitions:

Sales Revenue

Earnings accrued from the transactions of goods or services within a set period.

Inventory

A company's assets that are ready for sale or will be ready after processing.

Perpetual Inventory System

An inventory management system where records are updated on a continuous basis as inventory items are purchased and sold.

Transactions

Financial events that affect the assets, liabilities, and equity of a company.