A Firm Produces a Good and Generates $5 Million in Receipts

question 225

Multiple Choice

A firm produces a good and generates $5 million in receipts. Wages are $3 million, rent is $500,000, and interest payments are $1 million. Then

• A) profits are $500,000, the cost of production is $4.5 million, and households receive income equal to $4.5 million.
• B) profits are $500,000, the cost of production is $5 million, and households receive income equal to $4.5 million.
• C) profits are $500,000, the cost of production is $5 million, and households receive income equal to $5 million.
• D) profits are $500,000, the cost of production is $5 million, and households receive income equal to $3.5 million.

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Definitions:

Ml

Stands for Machine Learning, a branch of artificial intelligence that focuses on building systems that learn from and make decisions based on data.

Pint

A unit of volume measurement in the imperial and U.S. customary systems, equal to half a quart or approximately 473 milliliters.

Pharmacy

A pharmacy is a place where medications are stored, prepared, and dispensed to individuals based on a prescription from a licensed healthcare provider.

Medication

Drugs used to diagnose, treat, or prevent disease and improve health.