If a Firm Is at Full Capacity,what Must the Minimum

question 83

Multiple Choice

If a firm is at full capacity,what must the minimum special order price cover?

• A)variable costs associated with the special order
• B)variable and fixed manufacturing costs associated with the special order
• C)variable and incremental fixed costs associated with the special order
• D)variable costs and incremental fixed costs associated with the special order plus foregone contribution margin on regular units not produced

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Definitions:

Optimal Consumption

The consumption point at which a consumer achieves the highest possible satisfaction from available resources.

Loaves

Units of bread or any baked product that are shaped and sized for slicing, often made from a dough or batter.

Pounds

A unit of weight commonly used in the United States and Britain, equivalent to 0.453592 kilograms.

Indifference Curves

Graphical representations in microeconomics to show combinations of two goods that provide the consumer with the same level of satisfaction.