Use the Following to Answer Questions 40-42

question 20

Multiple Choice

Use the following to answer questions 40-42:
Figure 13.5
-(Figure 13.5) The figure represents a labor union with wage in dollars and quantity of labor in hundreds of hours. If the labor union chooses to maximize profit, how many workers will it supply?

• A) 2,750
• B) 4,000
• C) 5,000
• D) 8,000

---

Definitions:

Net Income

The total profit of a company after all expenses, including taxes and costs, have been subtracted from total revenue.

Solvency

The ability of a company to meet its long-term financial obligations and continue its operations in the long term.

Accumulated Other Comprehensive Income

The cumulative effect of other comprehensive income items, which is reported separately in the “Stockholders’ equity” section of the balance sheet.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the ownership interest of shareholders.