The Table Below Displays Hypothetical Demand and Supply Schedules for the Market

question 71

Multiple Choice

The table below displays hypothetical demand and supply schedules for the market for overnight parcel deliveries in Canada. TABLE 3-4 Refer to Table 3-4.The equilibrium price and quantity for overnight parcel delivery in Year 1 is ________ and ________ million parcels.

• A)$30; 80
• B)$14; 120
• C)$22; 115
• D)$10; 115
• E)$22; 130

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Definitions:

Equivalent Units

A concept used in cost accounting to express the amount of work done by incomplete units in terms of fully completed units.

First-In, First-Out

An inventory valuation method that assumes the first items placed in inventory are the first sold.

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process.

Cost Of Production Report

A financial report detailing the total cost and production quantities of a manufacturing department or process.