Which of the Following Facts Indicate That the Official Wage

question 57

Multiple Choice

Which of the following facts indicate that the official wage paid by the National Collegiate Athletic Association [NCAA] to the athletes is below the market-clearing level?

• A)Athletes practicing for greater number of hours before the seasonal tournaments
• B)Schools awarding more athletic scholarships to the students
• C)Athletes receiving cars,apartments,and cash payments
• D)Athletes receiving offers for promotional advertisement campaigns

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Definitions:

Variable Cost

Expenses that change in proportion to the activity of a business such as costs of goods sold, raw materials, and labor expenses.

Fixed Manufacturing Cost

Costs that remain constant regardless of the level of production, such as rent, salaries, and maintenance expenses.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, including depreciation, utilities, and salaries for supervisors.

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the profitability of a company's core activities excluding overhead.