Which of the Following Is Not Included in Gross Operating

question 37

Multiple Choice

Which of the following is not included in gross operating surplus?

• A)the depreciation of your university's photocopier
• B)the profits net of depreciation of Bombardier
• C)the depreciation of a United Way sign
• D)the purchase of new equipment by the government

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Definitions:

Returns To Scale

The rate at which production output increases as a result of proportional increases in all inputs.

Marginal Product

The additional output that results from using one more unit of a particular input, holding all other inputs constant.

Production Function

A mathematical equation that describes the maximum output that can be produced with a given set of inputs, such as labor and capital.

Output

Refers to the total amount of goods or services produced by an entity in a given period.