FIGURE 4-2 -Refer to Figure 4-2.In Diagram 1,the Elasticity of Demand at Demand

question 94

Multiple Choice

FIGURE 4-2
-Refer to Figure 4-2.In diagram 1,the elasticity of demand at $10 is

• A)0.
• B)less than 1.
• C)exactly 1.
• D)greater than 1.
• E)infinity.

---

Definitions:

Assembly Department

a division within a manufacturing plant where components are put together to create a final product.

Direct Labor Hour

The amount of time employees directly involved in manufacturing spend on producing a specific unit of output.

Factory Overhead Rates

Calculated rates used to allocate a factory's indirect costs to products being produced, aiding in determining total production costs.

Plantwide Rate

A single, uniform overhead absorption rate used throughout an entire factory or plant, applied to all units irrespective of the department in which the costs were incurred.