Figure 8-6 the Vertical Distance Between Points a and B Represents a Represents

question 42

Multiple Choice

Figure 8-6
The vertical distance between points A and B represents a tax in the market.
-Refer to Figure 8-6.Without a tax,the equilibrium price and quantity are

• A)$16 and 300.
• B)$10 and 600.
• C)$10 and 300.
• D)$6 and 300.

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Definitions:

Break-even Point

The point at which total revenues equal total costs, resulting in neither profit nor loss.

Variable Cost

Costs that vary depending on the amount of goods produced or the scale of operations in a business.

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business within a certain period, such as rent, salaries, and insurance.

High-low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.