Use the Following to Answer Questions

question 71

Multiple Choice

Use the following to answer questions .
Exhibit: Economic Adjustments
-(Exhibit: Economic Adjustments) Short-run but not long-run equilibrium positions occur at points

• A) a and b.
• B) b and c.
• C) c and d.
• D) a and c.

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Definitions:

Variable Selling

Costs related to selling that vary with sales activity, such as sales commission.

Fixed Costs

Fixed costs are business expenses that do not change in proportion to the volume of goods or services produced or sold.

Make or Buy

A decision-making process regarding whether to produce goods in-house or purchase them from an external supplier.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as factory rent and salaries of supervisory staff.