Figure 18-1 on the Graph, L Represents the Quantity of Labor and Labor

question 177

Multiple Choice

Figure 18-1
On the graph, L represents the quantity of labor and Q represents the quantity of output per week.
-Refer to Figure 18-1. Based on the shape of the curve, the
(i) total product is increasing.
(ii) total product is decreasing.
(iii) marginal product is increasing.
(iv) marginal product is decreasing.

• A)(i) only
• B)(i) and (iii) only
• C)(i) and (iv) only
• D)(ii) and (iv) only

---

Definitions:

Working Capital Needs

The funds required to finance the day-to-day operations of a business, including managing its short-term assets and liabilities.

Explicit Interest

The stated interest rate on a loan or financial instrument, not including the effects of compounding or any hidden charges.

Factoring

Financing method where a firm sells its accounts receivables, usually to a specialized financing company, at a discount to their full value.

Receivables

Payments due from clients to a business for the delivery of goods or services that have not yet been compensated.