Refer to the Information Provided in Table 9

question 43

Multiple Choice

Refer to the information provided in Table 9.2 below to answer the questions that follow.
Table 9.2
-Refer to Table 9.2. The equilibrium level of output is ________ billion.

• A) $1000
• B) $1,500
• C) $2,000
• D) $2,500

---

Definitions:

Residual Income

The income that remains after deducting all required expenses and cost of capital from operating income.

Investment Centers

Segments within a company for which managers have responsibility over cost, revenue, and investment decisions.

Cost Center

A business segment whose manager has control over cost but has no control over revenue or investments in operating assets.

Responsibility Center

Any business segment whose manager has control over costs, revenues, or investments in operating assets.