Although the Distribution of Compensation Was Highly Skewed, in 2007

question 42

Multiple Choice

Although the distribution of compensation was highly skewed, in 2007, Goldman Sachs' employee compensation amounted to

• A)$500,000 per employee.
• B)$250,000 per employee.
• C)$600,000 per employee.
• D)$400,000 per employee.

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Definitions:

MC

The additional cost incurred for producing one more unit of a good or service; it's synonymous with marginal cost.

Marginal Cost

is defined as the increase in total production cost that arises from producing an additional unit of a good or service.

TVC

Total Variable Costs, which are the sum of expenses that vary directly with the level of production or business activity.

TFC

Total Fixed Costs, which are the sum of all costs that remain constant regardless of the level of production or output.