Suppose That the Demand in a Particular Industry Is Given

question 70

Multiple Choice

Suppose that the demand in a particular industry is given by Q^d = 500 − 2P.When the market price in the industry is $50 per unit,total demand in the industry is _________.Furthermore,assume that the entire market consists of four firms that share the market equally.The HHI under these conditions is then _________.

• A) 225 units; 1,600
• B) 400 units; 2,500
• C) 225 units; 3,333.33
• D) 400 units; 10,000

---

Definitions:

Standard Cost System

An accounting method where costs are predetermined for product costing, facilitating variance analysis between expected and actual costs.

Fixed Manufacturing Overhead

Indirect costs associated with manufacturing that do not vary with the level of production, such as salaries of managers and depreciation of factory equipment.

Variances

The difference between expected and actual figures in budgeting and financial forecasting.

Direct Labor-Hours

The complete count of hours expended by personnel directly part of the process in making a product or providing a service.