A Firm's R200 Per Hour Isocost Line Is Calculated Using

question 42

Multiple Choice

A firm's R200 per hour isocost line is calculated using the equation K = 10 - 0.5L. However, if the price of labour doubles, then new equation becomes:

• A) K=10-0.5L
• B) K=10-L
• C) K=10-0.25L
• D) K=20-0.5L

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Definitions:

Just-In-Time Inventory

An inventory strategy companies employ to increase efficiency and decrease waste by receiving goods only as they are needed in the production process.

Inventory Levels

A measure of the quantity of goods and materials on hand in a business at any given time.

Planning

The process of defining goals, establishing strategies, and outlining tasks and schedules to achieve the goals.

Human Resources

The department within a business that is charged with finding, screening, recruiting, and training job applicants, as well as administering employee-benefit programs.