Refer to the Following Graph

question 64

Multiple Choice

Refer to the following graph.The price of capital (r) is $20. At the optimal combination of inputs for producing 14,000 units of output,what is the marginal rate of technical substitution?

• A)2.5
• B)0.67
• C)1.5
• D)0.80
• E)impossible to tell from the graph

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Definitions:

Situation Analysis

An assessment method used to understand the internal and external factors affecting an organization's performance and strategy.

Break-Even Analysis

The process of calculating the break-even point, which equals the sales volume needed to achieve a profit of zero.

Profitability

The degree to which a business or activity yields profit or financial gain.

Organizational Structure

The system of tasks, workflows, reporting relationships, and communication channels that link together the diverse parts of an organization.