If a Surplus Exists in a Market We Know That

question 207

Multiple Choice

If a surplus exists in a market we know that the actual price is

• A) above equilibrium price and quantity supplied is greater than quantity demanded.
• B) above equilibrium price and quantity demanded is greater than quantity supplied.
• C) below equilibrium price and quantity demanded is greater than quantity supplied.
• D) below equilibrium price and quantity supplied is greater than quantity demanded.

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Definitions:

Overhead Efficiency

Measures how well a company or organization utilizes its overhead expenses to produce goods or provide services.

Fixed Overhead Budget

A plan that outlines the expected fixed costs of operating a business or manufacturing a product, which do not change with production volume or sales levels.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to products or job orders, based on a chosen activity base such as direct labor hours.

Variable Component

A part of a cost or expense that varies directly with the level of output or activity.