Which of These Assumptions Is Often Realistic for a Firm

question 261

Multiple Choice

Which of these assumptions is often realistic for a firm in the short run?

• A)The firm can vary both the size of its factory and the number of workers it employs.
• B)The firm can vary the size of its factory but not the number of workers it employs.
• C)The firm can vary the number of workers it employs but not the size of its factory.
• D)The firm can vary neither the size of its factory nor the number of workers it employs.

---

Definitions:

Gross Earnings

The total income earned by a company before deductions such as taxes and expenses.

Overtime Pay

Additional compensation paid to employees who work beyond the standard hours set by the company's policy or by law.

FICA Tax Rate

The combined rate for Social Security and Medicare taxes in the United States, paid by both employees and employers.

Payroll Deduction

Amounts withheld from an employee's salary by an employer for taxes, benefits, and other legally permitted or voluntary deductions.