Refer to the Information Provided in Table 19 -Refer to Table 19

question 101

Multiple Choice

Refer to the information provided in Table 19.5 below to answer the questions that follow.
Capital and labor each cost $1 per unit. The firm produces 1,000 units of output.
Table 19.5
$$\begin{array} { | c | c c | } & \begin{array} { c } \text { Input } \\\text { Requirements } \\\text { per unit of } \\\text { Output }\end{array} \\\text { Technology } & K& L \\\hline \text { A } & 5 & 2 \\\hline \text { B } & 3 & 5 \\\hline\end{array}$$
-Refer to Table 19.5. Suppose the government imposes a 100% tax on capital. Which technology will the firm use?

• A) Technology A
• B) Technology B
• C) Either technology A or B-the firm is indifferent between the two.
• D) The answer is impossible to determine with the given information.

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Definitions:

Accounts Receivable

Outstanding receivables from clients to a business for supplied products or executed services awaiting payment.

Internal Control

Internal Control encompasses the policies, procedures, and actions implemented by a company to ensure the integrity of financial reporting, compliance with laws and regulations, and effective and efficient operations.

Cost-Benefit

An analysis or approach that compares the costs and benefits of a decision, project, or action to determine its feasibility or profitability.

Internal Control

Strategies and actions taken by a corporation to maintain the accuracy of its financial and accounting records, encourage responsible behavior, and deter dishonesty.