Given a Linear Supply Function of the Form Q_X^S =

question 80

Multiple Choice

Given a linear supply function of the form Q_X^S = 3,000 + 3P_X − 2P_r − P_w,find the inverse linear supply function,assuming P_r = $1,000 and P_w = $100.

• A) Q_X^S = 900 + 3P_X
• B) P_X = 300 + 0.3333Q_X
• C) P_X = −300 + 0.3333Q_X
• D) P_X = 2,900 + 3P_X

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Definitions:

Actual Price

The real price at which a transaction occurs, distinct from list or estimated prices, reflecting the amount paid or received in a transaction.

Standard Price

A predetermined cost attributed to materials, labor, and overhead to facilitate budgeting and variance analysis.

Efficiency Standard

A benchmark for measuring the optimal use of resources in the production of goods or the delivery of services.

100% Efficiency

A theoretical situation where all resources are utilized to their maximum capacity without any waste, often used as a benchmark or target in productivity and operations management.