Suppose That Joe Sells Pork in a Purely Competitive Market

question 39

Multiple Choice

Suppose that Joe sells pork in a purely competitive market. The market price of pork is $3 per pound. Joe's marginal revenue from selling the 12th pound of pork would be

• A) $36.
• B) $3.
• C) 12 lb.
• D) 1 lb.

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Definitions:

Predetermined Overhead Rate

A rate calculated before the period begins, used to allocate manufacturing overhead costs to products based on a particular activity base, such as machine-hours or labor-hours.

Automated Lathe

A CNC (Computer Numerical Control) machine tool used to shape metal, wood, or other materials by rotating it rapidly along its axis while pressing a fixed cutting or abrading tool against it.

Capacity

Capacity refers to the maximum amount of work that an organization is capable of completing in a given period.

Unused Capacity

The available but unutilized production capability or volume in a given period, indicating inefficiencies or room for output expansion.