The Profit-Maximizing Level of Output and the Profit-Maximizing Price for an Oligopolist

question 83

Multiple Choice

The profit-maximizing level of output and the profit-maximizing price for an oligopolist cannot be calculated when we don't know

• A)what the concentration ratio for the oligopolist's industry is.
• B)what the minimum efficient scale in the oligopolist's industry is.
• C)the demand curve and the marginal revenue curve of the oligopolist.
• D)the type of barrier to entry that exists in the oligopolist's industry.

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Definitions:

Plantwide Overhead Rate

A single overhead absorption rate calculated for an entire manufacturing plant, applied uniformly to all units produced.

Volume-related Measures

Metrics that are influenced by or correlate with the volume of production or sales.

Plantwide Overhead Rate Method

A single overhead absorption rate used across an entire factory or plant, applied to all units produced regardless of department or product line.

Unit Of Product

A unit of product is a standard measure of quantity or output which can be counted or used to quantify inventory, production, or sales in business operations.