Suppose Every Molecule of Salt Requires Exactly One Sodium Atom $\mathrm { Q } = \mathrm { Na } + \mathrm { Cl }$

question 20

Multiple Choice

Suppose every molecule of salt requires exactly one sodium atom, Na, and one chlorine atom, Cl. The production function that describes this is:

• A) \(\mathrm { Q } = \mathrm { Na } + \mathrm { Cl }\)
• B) \(\mathrm { Q } = \mathrm { Na } \times \mathrm { Cl }\)
• C) \(Q = \min ( \mathrm { Na } , \mathrm { Cl } )\)
• D) \(Q = \max ( \mathrm { Na } , \mathrm { Cl } )\)

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Definitions:

Net Price Method

The net price method accounts for purchases after subtracting discounts, essentially calculating the actual price paid for goods or services after all reductions.

Purchase Discounts Lost

The extra cost incurred by a company for not taking advantage of the discounts offered by suppliers for early payments.

Catalog Price

The price of an item as listed in a catalog, which may be subject to discounts based on various sales promotion strategies.

Perpetual Inventory System

An accounting method where goods are recorded as sold immediately through the use of computer systems, providing a continuous record of inventory.