-The Figure Above Shows Supply Curves for Soft Drinks

question 36

Multiple Choice

-The figure above shows supply curves for soft drinks. Suppose the economy is at point a. A movement to point d would be the result of

• A) an increase in technology.
• B) a decrease in the relative price of a soft drink.
• C) an increase in the relative price of a soft drink.
• D) an increase in the number of soft drink suppliers.

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Definitions:

Direct Labor-Hours

A measure of the work time spent by employees directly involved in the production of goods or services.

Machine-Hours

A measurement of production output or activity based on the number of hours machines are operated in the manufacturing process.

Machining Department

A specific division within a manufacturing plant where machining, a process of shaping metal or other materials, is carried out.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate indirect costs to products or services based on a consistent activity measure.