Use the Table Below to Answer the Following Questions

question 10

Multiple Choice

Use the table below to answer the following questions.
Table 10.2.1

-Refer to Table 10.2.1. If the price of labour is $10 per unit and the price of capital is $20 per unit, which method is economically efficient?

• A)1 only
• B)2 only
• C)3 only
• D)all of the above
• E)1 and 3 only

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Definitions:

Rent Expense

The cost incurred for renting a property or equipment, recognized as an expense on the income statement.

Debit Cash

An accounting entry that increases the cash balance in a company's books, indicating inflows of money or equivalent.

Credit Cash

An accounting entry that decreases the cash balance in the company’s books, often as a result of paying out cash for expenses or liabilities.

Accounts Payable

Liabilities of a business that represent its obligations to pay off a short-term debt to its creditors or suppliers.