Broha Company Manufactured 1,500 Units of Its Only Product During

question 44

Multiple Choice

Broha Company manufactured 1,500 units of its only product during 2019. The inputs for this production are as follows:
450 pounds of Material A at a cost of $1.50 per pound
300 pounds of Material H at a cost of $2.75 per pound
300 direct labor hours at $20 per hour
The firm manufactured 1,800 units of the same product in 2018 with the following inputs:
500 pounds of Material A at a cost of $1.20 per pound
360 pounds of Material H at a cost of $2.50 per pound
400 direct labor hours at $18 per hour
Round all calculations to 2 significant digits.
In 2019, the partial direct labor operational productivity is:

• A) 0.20.
• B) 0.25.
• C) 0.40.
• D) 4.00.
• E) 5.00.

Recognize the elasticity of demand and supply and its role in determining tax incidence.

Understand how excise taxes affect consumer surplus, producer surplus, and deadweight loss.

Identify the relationship between tax rates and tax revenue in the context of elasticity.

Understand how government policies, such as excise taxes, can influence market outcomes and efficiency.