Upon graduating accounting degree, you open your own accounting firm of which you and your assistant are the only employees. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $50,000 annually. Last year you earned a total revenue of $120,000. Rent and supplies last year were $50,000. Your assistant's salary is $30,000 annually. Refer to Scenario 7.6. Your annual operating profit is A) -$10,000. B) $40,000. C) $70,000. D) $80,000. The version of the law of diminishing returns that applies to production A) implies that as we add more workers our output decreases. B) applies only in the short run. C) is true only when all inputs are variable. D) applies in the short and long run.

Upon graduating accounting degree, you open your own accounting firm of which you and your assistant are the only employees. To start the firm you passed on a job offer with a large accounting firm that offered you a salary of $50,000 annually. Last year you earned a total revenue of $120,000. Rent and supplies last year were $50,000. Your assistant's salary is $30,000 annually. Refer to Scenario 7.6. Your annual operating profit is A) -$10,000. B) $40,000. C) $70,000. D) $80,000. The version of the law of diminishing returns that applies to production A) implies that as we add more workers our output decreases. B) applies only in the short run. C) is true only when all inputs are variable. D) applies in the short and long run.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter17: Capital And Time

Section: Chapter Questions

Problem 17.4P

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