If Q Is Total Real Output,K Is Capital in Use,L

question 143

Multiple Choice

If Q is total real output,K is capital in use,L is labor employed,an increase in the productivity of labor would imply a(n) :

• A)increase in K/L.
• B)increase in L/K.
• C)increase in Q/L.
• D)decrease in Q/K.
• E)decrease in (Q + K)/L.

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Definitions:

Contribution Margin

The difference between the sales revenue of a product and its variable costs, used to cover fixed costs and generate profit.

Absorption Costing

A costing technique that incorporates all costs associated with production, including both fixed and variable expenses, into the product's price.

Income Increase

A rise in the amount of money earned from various sources, including work, investments, or business operations.

Variable Costing

A costing method that includes only variable costs—costs that change with production levels—in the calculation of product costs.