Hoover Inc

question 105

Multiple Choice

Hoover Inc. has current assets of $350,000 and fixed plant assets of $650,000. Current liabilities are $100,000 and long-term liabilities are $250,000. There is $120,000 in preferred stock outstanding and the firm has issued 10,000 shares of common stock. What is the firm's total equity?

• A) $1,000,000.
• B) $530,000
• C) $350,000
• D) $650,000

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Definitions:

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input while holding other inputs constant.

Average Product

The total output produced per unit of a factor of production, calculated as total product divided by the quantity of the factor used.

Marginal Product

The additional output produced by adding one more unit of a specific input, while holding other inputs constant.

Production Possibilities

Various combinations of the amounts of different goods that can be produced within a given economy, given technological constraints and available resources.