The Following Question Are Based on the Following Diagram Illustrating

question 3

Multiple Choice

The following question are based on the following diagram illustrating the weekly average and marginal products for salespersons in the appliance department of a large department store:

-If the number of salespersons were increased from four to five,the number of appliances sold per week would

• A) increase.
• B) decrease.
• C) remain unchanged.
• D) decrease at first and then increase.
• E) most likely change but how is uncertain.

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Definitions:

Effective Tax Rates

The average percentage at which an individual or corporation is taxed.

Statutory Tax Rates

The tax rate legally imposed on income or profits by the government, which can vary depending on the type of income, entity, or other factors.

Deferred Income Tax Liability

A tax obligation recorded on the balance sheet that refers to taxes that are due in the future due to temporary differences between the financial accounting and tax reporting.

Pre-Tax Book Income

The income of a company before taxes have been deducted, as recorded in the accounting records according to standard accounting practices.