In Drawing a Demand Curve, the Labels for the Axes

question 198

Multiple Choice

In drawing a demand curve, the labels for the axes are

• A)price (on the vertical axis)and quantity (on the horizontal axis).
• B)price (on the vertical axis)and quantity per unit of time (on the horizontal axis).
• C)price (on the horizontal axis)and quantity (on the vertical axis).
• D)price (on the horizontal axis)and quantity per unit of time (on the vertical axis).

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Definitions:

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries, and insurance.

Machine-Hours

A measure of production time used in manufacturing, calculated by multiplying the number of machines by the hours they are operated.

Machine-Hours

An indicator of the amount of time machines are actively running, reflecting the cumulative hours of operation over a defined timeframe.

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or services, based on a relevant activity base.