Use the Figure to Answer the Following Question(s)

question 173

Multiple Choice

Use the figure to answer the following question(s) .
Figure 9-5
-If the market price in Figure 9-5 increases to $4, what output should the firm produce, and what would be the firm's maximum profit?

• A) output, 3; maximum profit, $3 loss
• B) output, 5; maximum profit, zero
• C) output, 5; maximum profit, slightly less than $5
• D) output, 6; maximum profit, slightly less than $6

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Definitions:

Indirect Manufacturing Cost

Costs in producing a product that are not directly traceable to the product, such as maintenance and utilities.

Units Produced

The total number of units of product completed by a company during a given period.

Direct Manufacturing Cost

Costs that are directly associated with the production of goods, including direct materials used and direct labor.

Units Produced

The total number of completed products manufactured within a specified period.