Assume That a Price Taker Uses 13 Employee-Hours and an Office

question 101

Multiple Choice

Assume that a price taker uses 13 employee-hours and an office to produce 100 units of output.The price of output is $5,the wage rate is $10,and rent is $200.The firm will collect _____ in total revenue.

• A) $500
• B) $300
• C) $170
• D) $100
• E) $5

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Definitions:

Depletion

A method used to allocate the cost of extracting natural resources, such as timber, minerals, and oil, from the earth over the period those resources are consumed.

Reclamation

The process of restoring land that has been mined, logged, or used for industrial purposes back to its natural state or ensuring it is usable for a different purpose.

Accumulated Depreciation

The cumulative value of depreciation expense assigned to a physical asset from the time it was first utilized.

Major Class of Asset

Represents categories of assets grouped based on their similar financial characteristics, such as cash, inventory, property, etc.