The Following Data Show the Total Output for a Firm

question 133

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.Diminishing marginal product of labour is first observed when the firm changes the amount of labour hired from

• A)0 to 1 units.
• B)1 to 2 units.
• C)2 to 3 units.
• D)3 to 4 units.
• E)4 to 5 units.

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Definitions:

Merchandise On Account

Goods that have been purchased but not yet paid for, often resulting in an accounts payable for the buyer.

Sales Allowance

A reduction in the selling price of goods or services, typically granted to customers for various reasons like minor defects or dissatisfaction.

Partial Derecognition

The process in accounting where only a portion of a financial asset or liability is removed from the balance sheet.

Receivables

These are amounts owed to a business by its customers for goods or services delivered on credit.