In January 2013,Tim's Gyms,Inc

question 176

Multiple Choice

In January 2013,Tim's Gyms,Inc.owned machines valued at $1 million. During the year,the market value of the equipment fell by 30 percent. During 2013,Tim spent $200,000 on new machines.During 2013,Tim's gross investment totalled

• A) $1 million.
• B) $300,000.
• C) $200,000
• D) $900,000.

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Definitions:

Capital

Resources, such as funds or assets, used by businesses and individuals to create wealth through investment or production.

Isoquants

Curves that represent combinations of various input factors that produce the same output level.

Production Function

A mathematical relationship that describes how inputs like labor and capital are converted into outputs, representing the maximum output possible from a given set of inputs.

Technical Efficiency

The ability of a firm to get the maximum output from a given set of inputs, minimizing waste.