Which of the Following Is an Example of a Permanent

question 40

Multiple Choice

Which of the following is an example of a permanent resource price differential?

• A)When the price of oil increases, oil exploration increases.
• B)When the price of CDs falls, CD production decreases.
• C)When demand for land in a city increases, its price increases above prices of land elsewhere.
• D)When demand for computer programmers increased, more people went into that field.
• E)When the price of oil rose, demand for solar panels increased.

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Definitions:

Overhead Applied

The allocated portion of overhead costs assigned to individual units or activities, based on a predetermined overhead rate.

Machining Department

A segment within a manufacturing facility where machining processes such as cutting, drilling, or shaping materials are carried out.

Overhead Applied

The amount of overhead costs allocated to the production of goods or services, often based on a predetermined overhead rate.

Assembly Department

A section within a manufacturing facility where assembly of the final product or parts of it takes place.