The Following Data Show the Total Output for a Firm

question 32

Multiple Choice

The following data show the total output for a firm when specified amounts of labour are combined with a fixed amount of capital. When
answering the questions, you are to assume that the wage per unit of labour is $25 and the cost of the capital is $100. TABLE 7-4
-Refer to Table 7-4.hired. Average product of labour begins decreasing with the unit of labour hired.

• A) 4th; 5th
• B) 3rd; 4th
• C) 4th; 3rd
• D) 3rd; 2nd
• E) 2nd; 3rd

---

Definitions:

Profit

The financial gain achieved when the revenue gained from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Economic Profit

The disparity between total income and total outlays, considering both manifest and concealed costs.

(P - ATC)q

The formula representing profit in economic terms, where P stands for price, ATC for average total cost, and q for quantity produced or sold.

Total Revenue

The total receipts from sales of a firm's goods or services.