-The Figure Above Shows a Graph of the Market for Pizzas

question 145

Multiple Choice

-The figure above shows a graph of the market for pizzas in a large town.What characterizes the equilibrium in this market?

• A) There is excess supply at the equilibrium price of $7.
• B) The government has selected the appropriate price for pizzas.
• C) The quantity supplied equals the quantity demanded.
• D) Supply equals demand.

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Definitions:

Unit Product Cost

The total cost assigned to a single unit of product, including direct materials, direct labor, and allocated overhead.

Absorption Costing

An approach in financial accounting that wraps all expenses incurred in manufacturing including direct materials, direct labor, and all overhead (variable and fixed), into the product's cost.

Net Operating Income

The total revenue of a business minus its operating expenses, excluding taxes and interest.

Absorption Costing

An accounting method that includes all manufacturing costs - direct materials, labor, and both variable and fixed overhead - in the cost of a product.