Given the Table Below,if Capital Is Fixed at One Unit,diminishing

question 59

Multiple Choice

Given the table below,if capital is fixed at one unit,diminishing returns begin with the $$\begin{array}{l}\quad\quad\quad\quad\quad \text { Units of Capital }\\\begin{array} { c c c c c } & & 1 & 2 & 3 \\ \text { Units } & 1 & 80 & 100 & 120 \\\text { of } & 2 & 180 & 220 & 260 \\\text { Labor } & 3 & 270 & 330 & 390 \\& 4 & 340 & 420 & 500 \\& 5 & 390 & 490 & 590 \\& 6 & 410 & 530 & 650\end{array}\end{array}$$ Amount of total output produced from various combinations of labor and capital.

• A)first unit of labor.
• B)second unit of labor.
• C)third unit of labor.
• D)fourth unit of labor.
• E)none of the above

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Definitions:

Disbursement Float

The amount of time it takes for money to be withdrawn from one account and cleared in another, affecting the available balance.

Collection Float

The time period between when a check is deposited into a bank account and the time the funds are available and officially credited to the account.

Book Balance

refers to the current balance in a company’s accounting records, not including any pending transactions that have not yet been cleared or settled.

Net Collection Float

The time difference between when a check is deposited and when the funds are available in the firm's account, affecting available cash.