The Total Revenue of the Month of June Amounted to $6,500;

question 7

Multiple Choice

The total revenue of the month of June amounted to $6,500; total expenses amounted to $3,500; and withdrawals amounted to $600. The net income for the month amounted to

• A) $6,000.
• B) $2,400.
• C) $3,000.
• D) $3,500.

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Definitions:

Profit-Maximizing

The process of adjusting production and pricing to achieve the highest possible profit from business operations.

MRP Capital

The marginal revenue product of capital, which is the additional revenue generated by one more unit of capital.

MRP Labor

Marginal Revenue Product of Labor: the additional revenue generated by employing one more unit of labor, assuming all other factors of production remain constant.

Price Labor

Relates to the cost of labor expressed in terms of money paid for work done, influencing the pricing of goods and services in an economy.