Elaina Company Had the Following Financial Results for Last Month

question 150

Multiple Choice

Elaina Company had the following financial results for last month. What type of responsibility center do these results reflect?

• A)Profit center
• B)Revenue center
• C)Investment center
• D)Cost center

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Definitions:

Convex Isoquants

Curves that depict combinations of inputs that yield the same level of output in a production process, where convexity implies diminishing marginal rates of technical substitution.

Expansion Path

In economics, the curve that shows how a firm's production changes as it increases inputs, keeping the input mix proportionate.

Marginal Product

The additional output obtained by employing one more unit of a specific input, keeping all other inputs constant.

Perfect Substitutes

Two goods for which the marginal rate of substitution of one for the other is a constant.