The Profit Linkage Rate

question 48

Multiple Choice

The profit linkage rate

• A)calculates the cost of the inputs that would have been used in absence of any productivity change and compares it to the cost of the inputs actually used for the current period.
• B)calculates the cost of the inputs that would have been used in absence of any productivity change and compares it to the cost of the inputs actually used for the prior period.
• C)calculates the cost of the inputs that would have been used, plus any productivity changes and compares it to the cost of the inputs actually used for the current period.
• D)calculates the cost of the outputs that would have been produced and compares it to the cost of outputs produced for the current period.

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Definitions:

Marginal Benefit

The incremental enjoyment or advantage received from the consumption or creation of one more unit of a good or service.

Minimum Price

The lowest price at which a product or service can be sold, often regulated by governmental policies or agreements to ensure fair competition and to protect consumers or producers.

Producer Surplus

The difference between the amount that producers are willing and able to supply a good for and the actual amount they receive (the market price).

Actual Price

Refers to the real price at which a transaction takes place, considering any discounts or premiums, as opposed to a theoretical or listed price.