Use the Following Information for Questions
Lonely Guy Repair

question 90

Multiple Choice

Use the following information for questions
Lonely Guy Repair Service recently performed repair services for a customer that totaled $400. Somehow the bill was lost and the company accountant was trying to recreate the bill from memory. This is what was remembered: $$\begin{array} { l l } \text { Total bill } & \$ 600 \\\text { Labor profit margin } & \$ 10 \\\text { Materials profit margin } & 20 \% \\\text { Total labor charges } & \$ 390 \\\text { Cost of materials used } & \$ 120 \\\text { Total hourly cost } & \$ 22.50\end{array}$$
-What was the material loading charge?

• A) 37.5%
• B) 43.8%
• C) 61.3%
• D) 75%

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Definitions:

Monopoly Power

The ability of a monopoly to dictate the terms of the market, including price and quantity of goods or services provided.

Free Entry

Free entry refers to a market condition where firms can enter the industry without facing any barriers or restrictions.

Long Run

Amount of time needed to make all production inputs variable.

Price Elasticity

A measure of the responsiveness of quantity demanded or supplied of a good to a change in its price, indicating how changes in price can affect consumption or production volumes.