Table 18-12 The Table Displays Data for a Small, Competitive, Profit-Maximizing Firm

question 499

Multiple Choice

Table 18-12
The table displays data for a small, competitive, profit-maximizing firm that produces and sells envelopes. The time frame is one week.
-Refer to Table 18-12. Suppose the firm sells each box of envelopes that it produces for $6. What is the value of the marginal product of the second worker?

• A)$1,440
• B)$1,212
• C)$636
• D)$552

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Definitions:

Operating Expenses

Costs associated with running a business's day-to-day operations, excluding the cost of goods sold.

Income Summary

An account in which revenues and expenses are summarized, used in the closing process to prepare the accounts for the next period.

Net Loss

The amount by which total expenses exceed total revenues for a business, indicating a financial loss over a specific period.

Capital

The financial resources that businesses use to fund their operations and growth.