Which of the Following Statements Regarding Equilibrium in the Markets

question 109

Multiple Choice

Which of the following statements regarding equilibrium in the markets for capital and for a natural resource used in producing a good is true?

• A)The marginal revenue product of capital will equal the marginal revenue product of the natural resource.
• B)The rental price of capital will equal the price of the natural resource.
• C)The marginal product of capital will equal the rental price of capital and the marginal product of the natural resource will equal the price of the natural resource.
• D)The marginal revenue product of capital will equal the rental price of capital and the marginal revenue product of the natural resource will equal the price of the natural resource.

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Definitions:

Ending Inventory

The worth of merchandise ready for sale at the conclusion of an accounting cycle, determined by adding beginning inventory to purchases and subtracting the cost of goods sold.

Days' Sales in Inventory

A financial ratio indicating the average time it takes for a company to turn its inventory into sales.

Cost of Goods Sold

The total cost of manufacturing or acquiring the products sold by a business during a particular period, including labor, materials, and overhead expenses.

Ending Inventory

The overall value of commodities poised for sale at the termination of an accounting period.