Use the Information Below for Shorter Inc

question 47

Multiple Choice

Use the information below for Shorter Inc. for 2015 and 2016 to answer the following question. During 2016, Shorter Inc. sold equipment with a cost of $30,000 and accumulated depreciation of $25,000. A gain of $3,000 was recognized on the sale of the equipment this was the only equipment sale during the year.
Assume that all purchases of equipment were paid with cash. How much cash was paid by Shorter for the purchase of equipment during 2016?

• A) $7,000
• B) $30,000
• C) $37,000
• D) $72,000

Analyze conditions under which isoquants can or cannot cross and the implications for production efficiency.

Understand the relationship between marginal product, total product, and average product of labor.

Recognize different types of curves used in production theory, including isoquant, isocost, and production possibilities frontier.

Evaluate the effects of changes in labor and capital on the marginal product and the cost-benefit analysis of such changes.

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Definitions:

Iron Deficiency

A condition resulting from insufficient iron, leading to a decrease in the number of red blood cells.

Tobacco Use

The act of consuming tobacco products, such as cigarettes, cigars, or snuff, often associated with nicotine dependence and various health risks.

Food Diary

A journal used to record the intake of food and beverages over a certain period, often used for monitoring nutritional intake or diet planning.

BMI

Body Mass Index, a numerical computation comparing a person's weight and height to categorize underweight, normal weight, overweight, or obesity.