Refer to the Following Figure

question 58

Multiple Choice

Refer to the following figure:
The price of capital is $50 per unit.
-How many units of labor should the firm use to produce 1,200 units of output at least cost?

• A) 120
• B) 500
• C) 240
• D) 128
• E) 175

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Definitions:

Average Collection Period

The average collection period is the average number of days it takes for a business to receive payments owed by its customers for sales made on credit.

Accounts Receivable

Funds that are owed to a company by its customers for products or services provided on credit.

Note Receivable

A written promise that one party will receive a certain amount of money from another party at a future date, categorized as an asset.

Honoured

In financial terms, referred to a cheque or payment that has been accepted and processed by the bank.