Refer to the Following

question 4

Multiple Choice

Refer to the following:
The price of labor is $15 per unit.
-How many units of labor should a firm use to produce 2,000 units of output at the least cost?

• A) 40
• B) 50
• C) 80
• D) 100
• E) none of the above

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Definitions:

Earnings Per Share

A measure of a company's profitability that calculates the portion of a company’s profit allocated to each outstanding share of common stock.

Earnings Per Share

A measure of a company's profitability calculated by dividing its net earnings by the number of outstanding shares.

Price-Earnings Ratio

A valuation ratio for a company calculated by dividing its current share price by its earnings per share, indicating the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company's earnings.

Dividend Payout Ratio

A financial ratio that shows the proportion of earnings a company pays out to shareholders in the form of dividends.