The Institution That Coordinates Actions of Consumers and Producers to Establish

question 140

Multiple Choice

The institution that coordinates actions of consumers and producers to establish prices for goods and services is known as:

• A)a market.
• B)a monopoly.
• C)a production possibilities curve.
• D)consumer sovereignty.

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Definitions:

Margin Of Safety

The difference between actual or expected sales and the break-even point, indicating the level of risk in failing to cover fixed costs.

Breakeven

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Sales

The exchange of a commodity or service for money; the action of selling something.

Variable Costing

A costing method that includes only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in product costs and treats fixed manufacturing overhead as a period expense.