Suppose a Firm Buys $3000 Worth of Inputs from Other

question 5

Multiple Choice

Suppose a firm buys $3000 worth of inputs from other firms, hires $2000 worth of labour services, and has sales revenue of $7500. The firm's resulting profit is $2500. If the GST (a value- added tax) rate is 5 percent, this firm will pay in GST.

• A) $0
• B) $125
• C) $225
• D) $375
• E) $2500

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Definitions:

Process Layout

An arrangement of resources in a manufacturing or service environment where similar processes are grouped together.

Product

A tangible good, an intangible service, or a combination of these.

Equipment

Tools or machinery that are necessary for a particular kind of work or activity, often utilized in various fields such as construction, manufacturing, and medical.

Materials

The physical substances from which objects are made, often used in the context of manufacturing and construction.