Assume the Backwoods Shoe Company Hires Three Inputs: Labor (L)

question 184

Multiple Choice

Assume the Backwoods Shoe Company hires three inputs: labor (L) , capital (K) , and land (A) to produce shoes (X) . Which of the following conditions must be met so that the firm is using the optimal, or least costly, combination of inputs?

• A) MP_L = MP_K = MP_A
• B) P_L = P_K = P_A
• C) MP_L/P_L = MP_K/P_K = MP_A/P_A
• D) MP_L = MP_K = MP_A = 1/P_X

Understand the fundamentals of accounting consolidation process including the calculation of consolidated retained earnings.

Gain the ability to prepare and interpret consolidated financial statements including comprehensive income and financial position.

Comprehend the concept of temporary differences in accounting and their impact on deferred income taxes in a consolidation context.

Understand the acquisition process related adjustments in the consolidated financial statements especially concerning amortizable capital assets and goodwill.

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Definitions:

Interval Reinforcement

A conditioning schedule where a response is rewarded after a variable amount of time has passed, in behavioral psychology.

Schedule of Reinforcement

A strategy in behavioral psychology determining when and how often a response will be reinforced.

Reinforcement

A process in behavioral psychology that increases the likelihood of a response by adding or removing a stimulus after the behavior.

Schedule

A plan that designates specific times at which certain tasks or events should occur.