Information About Ford Corporation Is as Follows What Is the Price-Recovery Component?
A)$47,050

question 73

Multiple Choice

Information about Ford Corporation is as follows: $\begin{array}{lrr}&\text {20X1}&\text {20X2}\\\text { Output (units) } & 40,000 & 42,000 \\\text { Selling price per unit } & \$ 25 & \$ 25\\\\\text { Change in profits}&\$48,012.50\\ \text { Profit-linked measurements:}\\\text { Materials}&\$550.00\\\text { Iahour }&412.50\end{array}$ What is the price-recovery component?

• A)$47,050.00
• B)$40,012.50
• C)$962.50
• D)($962.50)

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Definitions:

Marginal Revenue

The increase in earnings resulting from the sale of one extra unit of a good or service.

Marginal Cost

The amount needed to make one more unit of a certain product or service.

Total Economic Costs

The sum of all expenses a firm faces, including both explicit costs (direct payments) and implicit costs (opportunity costs).

Marginal Revenue

The gain in income from selling an additional unit of a product or service.