Case 8-2 Sergio Is an Accountant Who Works on a Computer

question 45

Multiple Choice

Case 8-2 Sergio is an accountant who works on a computer with a Windows operating system. But many of his clients are artists and designers who use Macintosh computers. When saving a word-processing document, which format should Sergio use so that it will be readable by most word-processing programs on different systems?

• A) Word Template (.dotx)
• B) Plain Text (.txt)
• C) Works (.wps)
• D) Web Page (.htm)

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Definitions:

Diminishing Marginal Product

The principle that as the quantity of a factor of production increases, holding all other inputs constant, the additional output generated by one more unit of that factor will eventually decrease.

Total Cost Function

A mathematical relationship expressing the total cost of production as a function of the quantity of output.

Explicit Costs

Direct, out-of-pocket payments for wages, rent, materials, and other inputs required for the production of goods or services.

Implicit Costs

The opportunity costs of utilizing resources owned by the firm that could have been employed elsewhere, not directly paid out in cash.