Figure 18-1

question 195

Multiple Choice

Figure 18-1.On the graph,L represents the quantity of labor and Q represents the quantity of output per week.
-Refer to Figure 18-1.Suppose the firm sells its output for $15 per unit,and it pays each of its workers $750 per week.When output increases from 210 units to 285 units,

• A) the marginal cost is $10 per unit of output.
• B) the marginal revenue is $5 per unit of output.
• C) the value of the marginal product of labor is $4,275
• D) the firm's profit decreases.

Analyze and compute net cash inflows and outflows from various activities.

Identify cash and cash equivalents and understand their roles in the cash flow statement.

Understand the effects of changes in assets and liabilities on cash flows.

Comprehend non-cash investing and financing activities and their disclosure requirements.

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Definitions:

Aggregate Demand

The aggregate need for every product and service in an economy, measured at a specific overall price level during a certain time frame.

Long-run Output

The maximum amount of goods and services an economy can produce when it fully utilizes its resources, typically considered over a period where all inputs can be adjusted.

Costs of Inflation

The negative impacts of inflation, such as reduced purchasing power, uncertainty in the economy, and the possible distortion of investment and savings decisions.

Income Effect

The change in consumer's purchasing behavior due to a change in their income, affecting how much of a product they buy.