The Chart Below Describes the Short Run Productivity of Workers

question 132

Multiple Choice

The chart below describes the short run productivity of workers at Paper Pushers Inc. ,an office support firm that has no variable costs other than labor. $\begin{array}{|l|l|}\hline \text { Workers } & \text { Pages per Hour } \\\hline 1 & 40 \\\hline 2 & 75 \\\hline 3 & 105 \\\hline 4 & 125 \\\hline 5 & 140 \\\hline 6 & 150 \\\hline 7 & 155 \\\hline\end{array}$
If the price of pages increases,the demand for workers will

• A) remain the same,as the workers are hired in the labor market and the product is sold in the paper processing market.
• B) increase because the workers will be motivated to produce more.
• C) increase because the value of what the workers make has increased.
• D) decrease because at a higher sales price the firm will not have to produce as much output.

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Definitions:

Closing Process

The series of steps performed at the end of an accounting period to prepare the books for the next period, including updating accounts and transferring balances.

Income Summary

An account in the ledger that aggregates all income and expense accounts to determine the net profit or loss for a certain period.

Revenue Accounts

Accounts that track the income generated from a company's primary operations and activities.

Expense Accounts

Financial accounts used to track money spent or costs incurred by a business in its operational activities.