Suppose a Tax of 5 Dollars Per Unit Is Imposed

question 52

Multiple Choice

Suppose a tax of 5 dollars per unit is imposed on a good.The supply curve is a typical upward-sloping straight line,and the demand curve is a typical downward-sloping straight line.The tax decreases consumer surplus by 10,000 dollars and decreases producer surplus by 15,000 dollars.The deadweight loss of the tax is 2,500 pounds.The tax decreased the equilibrium quantity of the good from

• A)6,500 to 5,500.
• B)5,500 to 4,500.
• C)5,000 to 3,000.
• D)6,000 to 4,000.

Understand the selection criteria and applications of costing systems in manufacturing processes.

Comprehend the accounting treatment of normal and abnormal spoilage in cost accounting.

Grasp the concept of equivalent units and how they are used in process costing, including differences between weighted average and FIFO methods.

Understand the rationale behind using predetermined overhead rates in costing.

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Definitions:

Epidermis

The outer layer of cells covering an organism, particularly the surface layer of skin or leaves in plants, acting as a protective barrier against environmental stress.

Lateral Roots

Secondary roots that grow out from the main root of a plant, contributing to the stability and water/nutrient absorption capabilities of the plant.

Pericycle

A layer of cells found just inside the endodermis of plant roots, important for initiating lateral root growth.

Cortex

The outer layer of an organ or structure, such as the brain’s cortex involved in many higher-level brain functions, or the cortex of plants responsible for storage and transport.