Meson Production Is a Price-Taker

question 133

Multiple Choice

Meson Production is a price-taker. They produce large spools of electrical wire in a highly competitive market, and so they practice target pricing. The current market price is $800 per unit. The company has $3,000,000 in assets and shareholders expect a return of 6% on assets. The company provides the following information: Currently the cost structure is such that the company cannot achieve its profit objective and must cut costs. If fixed costs cannot be reduced, how much reduction in variable cost per unit will be needed to hit the profit target?

• A)reduction in variable cost per unit by $120
• B)reduction in variable cost per unit by $1.80
• C)reduction in variable cost per unit by $20.30
• D)reduction in variable cost per unit by $21.80

---

Definitions:

Rejection

The act of dismissing or refusing someone's presence, ideas, or proposals.

Gaertner

could refer to a scholar or researcher, possibly in the context of social psychology, without additional context, it's challenging to provide a specific definition.

Evolutionary Perspective

An approach in psychology that examines human thoughts, feelings, and behaviors through the lens of natural selection and adaptation.

Groups

Collections of individuals who come together to achieve a common goal or share a common interest, characterized by structured communications and interactions.