Manufacturers of Which of the Following Would Be Most Likely

question 52

Multiple Choice

Manufacturers of which of the following would be most likely to use freight absorption pricing?

• A) chocolate candy
• B) laptop computers
• C) furniture polish
• D) feline flea collars
• E) repair parts for vacuum cleaners

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Definitions:

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable.

Demand and Supply

The fundamental concepts of economics that demonstrate how the quantity of goods or services demanded by consumers relates to the quantity supplied by producers at various prices.

Inelastic

Describing a situation where the demand or supply for a product does not significantly change in response to price changes.

Excise Tax

Excise tax is a tax on the sale or use of specific products or transactions, often levied to discourage certain behaviors or raise revenue.