Suppose a Firm Has an Annual Budget of $200,000 in Wages

question 61

Multiple Choice

Suppose a firm has an annual budget of $200,000 in wages and salaries,$75,000 in materials,$30,000 in new equipment,$20,000 in rented property,and $35,000 in interest costs on capital.The owner/manager does not choose to pay himself,but he could receive income of $90,000 by working elsewhere.The firm earns revenues of $360,000 per year.What are the annual explicit costs for the firm described above?

• A)$450,000.
• B)$160,000.
• C)$90,000.
• D)$360,000.

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Definitions:

Self-efficacy

Self-efficacy is the belief in one's own ability to accomplish tasks and overcome challenges, influencing motivation and performance.

High Level

Pertains to something that is of a superior or advanced status, complexity, or importance.

Variable Ratio

A reinforcement schedule in which the number of responses required for a reward varies, making the reinforcement unpredictable and often leading to a high and steady rate of response.

Schedule of Reinforcement

refers to the strategy for timing and application of rewards to encourage or strengthen desired behaviors in behavioral psychology.