Sarafiny Corporation Is in the Process of Preparing Its Annual

question 54

Multiple Choice

Sarafiny Corporation is in the process of preparing its annual budget. The following beginning and ending inventory levels are planned for the year. Each unit of finished goods requires 2 grams of raw material. The company plans to sell 720,000 units during the year.The number of units the company would have to manufacture during the year would be:

• A) 720,000 units
• B) 795,000 units
• C) 665,000 units
• D) 770,000 units

---

Definitions:

Short-Run Monopoly

A market structure where a single firm dominates the market temporarily, possibly due to patents or market conditions that are expected to change.

Profit-Maximizing Monopoly

A market situation where a single firm controls the entire market for a product or service, setting the price at a level that maximizes its profits.

Output Per Week

The total product or service quantity produced by a company or economy in a week.

Monopoly Equilibrium

The state in which a monopolistic company determines its price and output level where its marginal cost equals its marginal revenue.