Use the Following to Answer Question

question 66

Multiple Choice

Use the following to answer question:
-Table: Spring Water.The table shows the demand and cost data for a firm in a monopolistically competitive industry producing drinking water from underground springs.The profit-maximizing price is:

• A)$16.
• B)$3.
• C)$5.
• D)$10.

---

Definitions:

Over/Underabsorbed Overhead

The difference between the overhead costs applied to products and the actual overhead costs incurred.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ending with net income or loss.

Cost Pool

A grouping of individual costs, typically by department or service center, from which cost allocations are made later.