Below Is Productivity Data for Firm Nearly Done Inc

question 116

Multiple Choice

Below is productivity data for firm Nearly Done Inc.which purchases resources in a perfectly competitive factor market.

-Refer to the above information to answer this question.At its optimal output,what is Nearly Done's total profit or loss if the market wage rate is $8,total fixed costs are $24 and labour costs are the only variable costs?

• A)-$72.
• B)-$8.
• C)+$10.
• D)+$12.
• E)Cannot be determined.

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Definitions:

Manufacturing Firm

A company engaged in the industrial process of producing goods through physical, chemical, or mechanical transformation of materials or components.

Retail Chain

A network of stores operated by the same company, offering similar or related products or services to consumers.

Discount Rate

The interest rate used in discounted cash flow analysis to determine the present value of future cash flows or investments.

Cash Flows

The movement of money into and out of a company from operational, investment, and financing activities.