The Following Data Show the Total Output for a Firm

question 139

Multiple Choice

The following data show the total output for a firm when different amounts of labour are combined with a fixed amount of capital.Assume that the wage per unit of labour is $10 and the cost of the capital is $50.
TABLE 7-3
-Refer to Table 7-3.If this firm is producing 20 units of output per period its marginal cost is

• A)$1.00.
• B)50 cents.
• C)$1.67.
• D)16.7 cents.
• E)$10.00.

Understand the hierarchy of effects model in marketing communication.

Identify various stages in a consumer’s journey from awareness to advocacy.

Recognize the planning and implementation phases of an Integrated Marketing Communication (IMC) program.

Acknowledge different methods of setting promotion budgets.

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Definitions:

Discount Rate

The rate of interest known as the discount rate is employed in discounted cash flow analysis to figure out the current value of cash flows expected in the future.

Working Capital

A measure of a firm's ability to fulfill short-term financial obligations, underscored by its liquid assets minus its due debts.

Salvage Value

The appraised remaining value of an asset at the point of its life end.

Pretax Return

The earnings of a company before taxes have been deducted.