Suppose That Real Domestic Output in an Economy Is 20

question 17

Multiple Choice

Suppose that real domestic output in an economy is 20 units, the quantity of inputs is 10, and the price of each input is $4. The per-unit cost of production in the economy described is

• A) $0.50.
• B) $1.
• C) $2.
• D) $5.

Understand the characteristics and differences among pre-industrial, industrial, and postindustrial societies.

Comprehend the concepts of mechanical and organic solidarity and their application to types of societies.

Grasp the definition and importance of social structure in shaping society.

Recognize the societal impact of division of labor based on various factors.

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Definitions:

Operating Cycle

The period between the acquisition of inventory and the collection of cash from receivables, indicating the efficiency of a company's operations.

Inventory Period

The duration of time goods remain in inventory before being sold.

Accounts Receivable Period

The accounts receivable period is the average time it takes for a business to receive payments owed by its customers for goods or services sold on credit.

Cash Cycle

This term describes the time it takes for a business to convert its investments in inventory and other resources into cash flows from sales.