Assume That the Product Price Is $4 Per Unit and That

question 34

Multiple Choice

Assume that the product price is $4 per unit and that the hourly wage for workers is $12.Neither price nor wage changes with output.In Table 30.1, the marginal physical product of the third worker hired is

• A)15 units per hour.
• B)4 units per hour.
• C)3 units per hour.
• D)5 units per hour.

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Definitions:

Required Rate of Return

The minimum annual percentage return an investor expects to receive from an investment, considering its risk.

NPV

Net Present Value; a calculation used to assess the profitability of an investment by summing the present values of incoming and outgoing cash flows.

CCA Class

In Canadian taxation, a classification system for capital cost allowance that categorizes assets for depreciation purposes.

Erosion Cost

Costs incurred from the gradual loss or diminishing in value of an asset over time.