The Following Table Gives Information on the Price,quantity,and Total Cost

question 58

Multiple Choice

The following table gives information on the price,quantity,and total cost of production for a monopolist.What is the profit-maximizing price?

• A) $5
• B) $4
• C) $3
• D) $2

---

Definitions:

Unit Product Cost

The cumulative expense of manufacturing a single product unit, encompassing direct materials, direct labor, and overhead costs related to production.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or services, calculated before the actual costs are known, based on estimated costs.

Overhead Rate

A measure used to allocate overhead costs to products or services, often calculated by dividing total overheads by a base measure such as labor hours or machine hours.

Estimated Labor-Hours

The projected number of labor hours required to complete a batch of goods or provide a service.