In the Table Below,the Capital Stock Is Fixed at 40

question 43

Multiple Choice

In the table below,the capital stock is fixed at 40 units,the price of capital is $15 per unit,and the price of labor is $80 per unit. How much does the 50th unit of output add to the firm's total cost?

• A)$6.67
• B)$10
• C)$400
• D)$600
• E)none of the above

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Definitions:

Corporate Form

A legal structure for businesses characterized by the business being considered a separate legal entity from its owners or shareholders.

Limited Liability

Limited liability is a form of legal protection for shareholders and owners that limits their loss to the amount invested in the company.

Transferability

Transferability is the ability of an asset to be transferred or moved from one party to another with ease.

Pre-tax Profit

Earnings of a business before any tax is applied; also known as gross profit or operating profit.