In the Summer 2012 the Lobster Catch in Maine Was

question 373

Multiple Choice

In the summer 2012 the lobster catch in Maine was especially large, but instead of celebrating the fisherman were suffering from a lower total revenue. (Source: New York Times, July 28, 2012) As the lobster catch increases, there is

• A) a movement along the demand curve, resulting in a higher price and a decreased quantity.
• B) a movement along the demand curve, resulting in a lower price and an increased quantity.
• C) no change in either the price or the quantity.
• D) a movement along the demand curve, resulting in a higher price and an increased quantity.

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Definitions:

Variances

The differences between planned, budgeted, or standard costs and actual costs.

Widgets

A generic term often used to refer to any product or manufactured item for examples or hypothetical situations.

Fixed Factory Overhead

The regular, consistent costs associated with operating a factory that do not vary with production volume, such as rent, salaries, and utilities.

Variable Factory Overhead

Costs of manufacturing that fluctuate with the level of production output, such as utilities and raw materials.