Leah LLC, a Producer of Sporting Goods, Provided Its Employees

question 51

Multiple Choice

Leah LLC, a producer of sporting goods, provided its employees with a stock option plan. After organizational restructuring, the management has decided to replace the stock option plan with profit sharing. Which of the following is true of Leah LLC?

• A) It provided organizational incentives; now it provides individual incentives.
• B) It provided organizational incentives; now it provides group incentives.
• C) It provided organizational incentives; now also it provides the same.
• D) It provided individual incentives; now also it provides the same.

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Definitions:

Average Total Cost

The total cost of producing a specific quantity of a good or service divided by the quantity produced, representing the per-unit cost of production.

Marginal Cost

The extra expense incurred from the production of an additional unit of a product or service.

TVC

Total Variable Costs; the sum of all costs that vary with the level of production, such as materials and labor directly involved in creating a product.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output in the short term.