-In Figure 3-11,suppose That Initially the Market Is in Equilibrium

question 174

Multiple Choice

-In Figure 3-11,suppose that initially the market is in equilibrium as defined by the demand and supply curves D₁ and S₁.Which price/quantity combination could result from a decrease in the wages paid to workers?

• A) $100 and 50,000
• B) $120 and 50,000
• C) $75 and 75,000
• D) $120 and 75,000
• E) $120 and 100,000

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Definitions:

Accounting Break-even

The point at which a company's revenues exactly cover its expenses, without generating a profit or a loss.

Cash Break-even

Cash break-even is the point at which a business generates just enough revenue to cover its cash outflows, without making a profit or loss.

Financial Break-even

The point at which total revenues equal total costs, resulting in neither profit nor loss.

Depreciation

The accounting method of allocating the cost of a tangible asset over its useful life, representing wear and tear, decay, or decline in value.