Suppose a Firm Has an Annual Budget of $200,000 in Wages

question 6

Multiple Choice

Suppose a firm has an annual budget of $200,000 in wages and salaries, $75,000 in materials, $30,000 in new equipment, $20,000 in rented property, and $35,000 in interest costs on capital.The owner/manager does not choose to pay himself, but he could receive income of $90,000 by working elsewhere.The firm earns revenues of $360,000 per year.To receive a normal profit, the firm described above would have to

• A) Experience $10,000 less in cost.
• B) Receive $90,000 more in revenue.
• C) Receive $10,000 more in revenue.
• D) Do nothing since it already earns a normal profit.

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Definitions:

Language Skill Development

The progression of acquiring language abilities, including understanding and producing spoken and written language.

Cognitive Functions

Mental processes involved in gaining knowledge and comprehension, including thinking, knowing, remembering, judging, and problem-solving.

Script

A structured sequence of behaviors or actions associated with a particular role or situation.

Autobiographical Memory

A person's memory of significant events and experiences from their own life, which often include emotional and personal context.