-The Table Above Shows the Number of Pounds of Bricks

question 315

Multiple Choice

-The table above shows the number of pounds of bricks that can be produced by the Red Brick Company as the number of workers hired increases. The brick market is perfectly competitive and each pound of bricks sells for $20. The labor market is competitive and the wage rate is $30 an hour. When the Red Brick Company maximizes its profit, it produces ________ bricks an hour.

• A) 19
• B) 21
• C) 22
• D) 10

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Definitions:

Working Capital

A financial metric representing the difference between a company's current assets and current liabilities, indicating short-term liquidity.

Capital Budgeting

Capital budgeting is the process a business undertakes to evaluate potential major investments or expenditures to achieve long-term benefits.

Straight-Line Depreciation

A depreciation method where an asset's cost is evenly distributed over its expected lifespan.

Net Present Value

A financial metric used to evaluate the profitability of an investment, calculated by subtracting the present value of cash outflows from the present value of cash inflows over a period.