The Following Table Illustrates Alternative Production Techniques for Producing 18

question 144

Multiple Choice

The following table illustrates alternative production techniques for producing 18 widgets that can be sold for $1 each for a total revenue of $18. If the price of labor increases from $2 to $3, then the results of using Technique C will change from an economic

• A) loss of $2 to a loss of $1.
• B) profit of $2 to a profit of $1.
• C) profit of $1 to a profit of $2.
• D) loss of $1 to a loss of $2.

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Definitions:

Shares Outstanding

Shares outstanding refer to the total number of shares of stock that are currently owned by investors, including both public and institutional ownership.

Market Price

The prevailing rate for transactions involving assets or services in an economic marketplace.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the profitability per share.

Merger Premium

The additional amount an acquirer pays over the current market price of a target company's shares during a merger or acquisition.