Use the Table Below to Answer the Following Questions

question 27

Multiple Choice

Use the table below to answer the following questions.
Table 6.4.1
-Refer to Table 6.4.1.The table shows the demand and supply schedules for rice.With a production quota of 2,000 boxes a week,the price of a box of rice is ________,the marginal cost of producing rice is ________ a box,and the quantity of rice produced is ________ boxes a week.

• A)$1.30;$1.60;2,000
• B)$1.60;$1.30;2,000
• C)$1.40;$1.40;2,500
• D)$1.40;$1.40;2,000
• E)$1.60;$1.30;2,500

Comprehending the concept of cost drivers and their analysis in cost management.

Grasping the importance and the method of monitoring activity-based performance measures.

Assessing quality costs within a manufacturing setup.

Understanding the concept and importance of value-added activities in enhancing customer and business value.

---

Definitions:

Marginal Product

Marginal Product is the additional output resulting from the use of one more unit of a production input, holding all other inputs constant.

Units of Output

The quantities of a good or service produced by a firm or economy.

Diminishing Returns

is an economic principle stating that if one input in the production of a commodity is increased while other inputs are held fixed, a point will eventually be reached at which additions of the input yield progressively smaller, or diminishing, increases in output.

Labor Input

A measure of the amount of labor used in the production process, typically quantified in labor hours.