Figure 8-2 the Vertical Distance Between Points C and D Represents a Represents

question 66

Multiple Choice

Figure 8-2
The vertical distance between points C and D represents a tax in the market.
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-Refer to Figure 8-2. Total surplus without the tax is

• A)$30, and total surplus with the tax is $40.
• B)$40, and total surplus with the tax is $30.
• C)$24, and total surplus with the tax is $6.
• D)$6, and total surplus with the tax is $24.

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Definitions:

Direct Materials Dollars

The total cost of all the raw materials used in the production of a product.

Factory Overhead Rate

Factory overhead rate is the method of allocating indirect manufacturing costs, like utilities and rent, to individual units of production based on a specific allocation base.

Assembly Department

a division within a manufacturing plant where components are put together to create a final product.

Direct Labor Hour

The amount of time employees directly involved in manufacturing spend on producing a specific unit of output.