$D _ { M }$ Represents Market Demand $S _ { F }$

question 8

Multiple Choice

$D _ { M }$ represents market demand, $S _ { F }$ represents the fringe supply curve, $D _ { R }$ represents the dominant firm's residual demand curve, $M R _ { R }$ represents the dominant firm's marginal revenue curve, and $M C$ represents the dominant firm's marginal cost curve.


-Consider the information above. In equilibrium, how many units will the fringe producers supply?

• A)45 units
• B)60 units
• C)90 units
• D)135 units

---

Definitions:

Variable Costing

An accounting method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Traceable Fixed Expenses

Fixed costs that can be directly linked to a specific product, service, or department.

Segment Margin

The amount of profit or loss generated by a specific segment of a business, considering only the revenues and expenses directly attributable to that segment.

Division's

A specific segment or branch of a company or organization that operates semi-independently or focuses on a particular task, product line, or service.