If a Chair Can Be Sold for $20 and It

question 121

Multiple Choice

If a chair can be sold for $20 and it takes a worker two hours to make a chair,the marginal revenue product of this worker is

• A)$5 per hour.
• B)$10 per hour.
• C)$20 per hour.
• D)$2 per hour.

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Definitions:

Inventory

An accounting term referring to goods and materials held by a business for the purpose of sale or production.

Net Present Value

A method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Operating Cash Flows

Operating cash flows refer to the amount of cash generated by a company's normal business operations, intended to sustain and grow the business.

Net Working Capital

The spread between a firm's existing assets and ongoing liabilities, signifying the company's financial viability in the short term.