If Q Is Total Real Output,K Is Capital in Use,and

question 75

Multiple Choice

If Q is total real output,K is capital in use,and L is labor employed,then _____ is the formula to calculate the productivity of labor.

• A)K/L
• B)L/K
• C)Q/L
• D)Q/K
• E)(Q + K)/L

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Definitions:

Depreciation Expense

The allocation of the cost of an asset over its useful life to gradually reduce its value on the balance sheet.

Operating Cash Flow

Cash generated from the normal operations of a business, reflecting the company's ability to generate sufficient revenue to maintain operations.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance expenses.

Cash Break-Even

A financial metric indicating the point at which a company's cash expenses equal its cash revenues, excluding non-cash expenses.