Sears Can Calculate the Profits It Generates from Appliances,home Furnishings,and

question 179

Multiple Choice

Sears can calculate the profits it generates from appliances,home furnishings,and every other department in the store if it treats each department as a ________.

• A) profit center
• B) cost center
• C) economic unit
• D) centralized unit

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Definitions:

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor, such as labor or capital.

Marginal Resource Cost

The additional cost incurred by acquiring one more unit of a resource, such as labor or raw materials.

Labor Demand Data

Information that reflects the quantity of labor that employers are willing to hire at various wage rates.

Labor Supply Data

Information or statistics that represent the total number of hours that workers are willing and able to work at different wage rates in a given time period.