Baker Company Produced 30,000 Units and Sold 28,000 Units in 2011

question 7

Essay

Baker Company produced 30,000 units and sold 28,000 units in 2011. Beginning inventory was zero. During the period, the following costs were incurred: $\begin{array}{lr}\text { Indirect labour } & £ 60,000 \\\text { Indirect materials } & 30,000 \\\text { Other } & 90,000 \\\text { Fixed manufacturing overhead } & 180,000 \\\text { Fixed administrative expenses } & 150,000 \\\text { Fixed selling expenses } & 120,000 \\\text { Variable selling expenses, per unit } & 40 \\\text { Direct labour, per unit } & 80 \\\text { Direct materials, per unit } & 20\end{array}$
a.Absorption costing
b.Variable costing

Describe conditions for long-run equilibrium in a purely competitive firm.

Identify the features indicating productive efficiency and allocative efficiency in pure competition.

Illustrate the relationship between marginal cost, marginal revenue, price, and average total cost in the context of pure competition.

Distinguish between different types of industries based on long-run supply and demand curves.

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Definitions:

Cultural Diffusion

The process through which cultural beliefs, practices, technologies, or items spread from one society or cultural group to another.

Indigenous

Referring to the original inhabitants of a region or country, usually people who have historically been marginalized and maintain distinct cultural traditions.

Collective Behavior

Collective behavior is a sociological term for actions undertaken by a group of people who are united by a common interest, often manifesting in spontaneous and unstructured ways outside societal norms.

Social Behavior

Actions within a society that are carried out by individuals and are influenced by the presence and behavior of others.