A Cost Accountant Is Developing a Regression Model to Predict

question 85

Multiple Choice

A cost accountant is developing a regression model to predict the total cost of producing a batch of printed circuit boards as a linear function of batch size (the number of boards produced in one lot or batch) .The intercept of this model is the ______.

• A)batch size
• B)unit variable cost
• C)fixed cost
• D)total cost
• E)total variable cost

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Definitions:

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for a degree of market power and product differentiation.

Nash Equilibrium

A concept in game theory where no participant can gain by unilaterally changing strategies if the strategies of the others remain unchanged.

Monopoly Output

The quantity of goods or services produced by a monopoly, which is determined at the point where the monopoly's marginal cost meets the market demand curve.

Duopolist

One of two firms in a market where only two firms offer a particular product or service, leading to a specific form of competition.