Figure 13-1 Suppose That a Firm in a Competitive Market Has the Has

question 452

Multiple Choice

Figure 13-1
Suppose that a firm in a competitive market has the following cost curves:
-Refer to Figure 13-1.The firm should shut down if the market price is

• A) above $8.
• B) above $6.30 but less than $8.
• C) above $4.50 but less than $6.30.
• D) less than $4.50.

---

Definitions:

Labor Rate Variance

The difference between the actual labor costs and the standard labor costs expected for the actual production achieved.

Hours

A measurement of time used to quantify the duration of work performed or the operational time of machinery or businesses.

Distribution

Distribution involves the process of making a product or service available for the consumer or business user that needs it.

Materials Standards

The set specifications or benchmarks for the quality, quantity, and cost of materials used in manufacturing.