The Following Table Shows the Costs and Benefit of Producing

question 8

Multiple Choice

The following table shows the costs and benefit of producing a commodity. Table 13.1

- According to Table 13.1,at the free market equilibrium:

• A)1 unit of output is produced.
• B)2 units of output is produced.
• C)5 units of output is produced.
• D)4 units of output is produced.
• E)3 units of output is produced.

---

Definitions:

Variable Cost

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Carrying Cost

The total cost associated with holding inventory, including storage, insurance, taxes, and potential obsolescence.

Credit Collections

The process of pursuing payments of debts owed by individuals or businesses, typically undertaken by a department or agency.