Use the Information Below to Answer the Following Question(s)

question 125

Multiple Choice

Use the information below to answer the following question(s) .The following data for a pottery company pertain to the production of 2,000 clay pots during July.Direct Materials (all materials purchased were used) :
Direct Manufacturing Labour:

-What is the standard direct material amount per pot?

• A)1.00 kilogram
• B)1.88 kilograms
• C)2.12 kilograms
• D)3.00 kilograms
• E)4.00 kilograms

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Definitions:

Zero-profit Equilibrium

A situation in a perfectly competitive market where firms just cover their costs, leaving no surplus for economic profit.

Consumer Preference

The subjective tastes and preferences that influence buyers' choices of goods and services.

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market price.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers equals the quantity supplied by producers, leading to a balance in the market.