To Produce 150 Units of Output,the Firm Must Use 3

question 85

Multiple Choice

To produce 150 units of output,the firm must use 3 employee-hours.To produce 300 units of output,the firm must use 8 employee-hours.Apparently,the firm is

• A) not profitable.
• B) in the long run.
• C) experiencing diminishing marginal returns.
• D) not using any fixed factors of production.
• E) failing to maximize profit.

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Definitions:

Par Value

The nominal or face value assigned to a share of stock or bond, typically used in accounting as a base value rather than market value.

Dividend Liability

Refers to the amount a company owes to its shareholders after the board of directors declares a dividend but before the company has actually paid it.

Date of Declaration

The specific date on which a company's board of directors announces its intention to pay a dividend to shareholders.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid in a given year, and must be paid out before common stock dividends.