If Technological Advances Lower the Cost of Computer Chips, in the Market

question 52

Multiple Choice

If technological advances lower the cost of computer chips, in the market for computers the equilibrium price will _______ and the equilibrium quantity will _______.

• A) rise; increase
• B) fall; increase
• C) fall; decrease
• D) rise; decrease

Recognize the use and rationale behind plantwide overhead rates.

Analyze the benefits of dual rate versus single rate cost allocation in different firm scenarios.

Discuss the reasons for allocating indirect costs to responsibility centers.

Appreciate the importance of considering seasonal, cyclical, and trend factors in capacity estimation and overhead allocation.

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Definitions:

Directed Verdict

A ruling by a judge in a jury trial, typically taking place before the jury deliberates, concluding that no reasonable jury could reach a different conclusion and therefore a verdict is directed without jury consideration.

Judgment As A Matter Of Law

A legal ruling by a judge, typically during a trial, stating that no reasonable jury could find for the other side based on the factual evidence presented.

Pretrial Conference

A meeting between the parties involved in a legal case and a judge to discuss the details of the trial, settle procedural matters, and sometimes resolve the case without a trial.

Settlement

is an agreement reached either before or after court action begins, where parties resolve a dispute without a trial.