A Firm Has Current Assets of $25,000,long Term Assets of $100,000,long

question 73

Multiple Choice

A firm has current assets of $25,000,long term assets of $100,000,long term liabilities of $50,000,and $50,000 in shareholders' equity.What is its net working capital?

• A) $0
• B) $50,000
• C) $100,000
• D) $25,000

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Definitions:

Marginal Cost

The increase or decrease in the total cost that arises from producing one additional unit of a particular good.

Average Cost

The total cost divided by the number of goods produced, reflecting the cost per unit of output.

Cost Function

A mathematical relationship that describes how production costs change with variations in the quantity of output produced.

Competitive Firm

A company that operates in a market with many buyers and sellers, where no single entity has the power to dictate prices for goods and services.