Use the Following Table to Answer the Question Below: the Amount

question 84

Multiple Choice

Use the following table to answer the question below: The amount of total output produced from various combinations of labor and capital.
If the capital stock is fixed at one unit,how much does the third unit of labor add to total output?

• A)20
• B)40
• C)60
• D)80
• E)none of the above

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Definitions:

Payback Period

The number of years it takes a firm to recover its project investment. Payback does not capture a project’s entire cash flow stream and is thus not the preferred evaluation method. Note, however, that the payback does measure a project’s liquidity, and hence many firms use it as a risk measure.

Capital Budget Expenditures

Outlays of funds by a company for major investments or acquisitions intended to drive future growth.

Compliance

Adherence to laws, regulations, guidelines, and specifications relevant to its business processes.

Environmental Issues

Concerns related to the preservation of natural resources and the minimization of pollution and waste.