Table 93 Table 93 Shows the Demand and Cost Schedules for a Monopolistically

question 101

Multiple Choice

Table 9.3
$$\begin{array} { | c | c | c | c | c | } \hline \text { Quantity } & \begin{array} { c } \text { Price } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Total Revenue } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Total Variable } \\\text { Cost } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { (dollars) }\end{array} \\\hline 0 & 21 & 0 & 0 & 50 \\\hline 1 & 20 & 20 & 16 & 66 \\\hline 2 & 19 & 38 & 31 & 81 \\\hline 3 & 18 & 54 & 45 & 95 \\\hline 4 & 17 & 68 & 59 & 109 \\\hline 5 & 16 & 80 & 75 & 125 \\\hline 6 & 15 & 90 & 93 & 143 \\\hline 7 & 14 & 98 & 112 & 162 \\\hline 8 & 13 & 104 & 140 & 190 \\\hline 9 & 12 & 108 & 180 & 230 \\\hline 10 & 11 & 110 & 230 & 280 \\\hline\end{array}$$ Table 9.3 shows the demand and cost schedules for a monopolistically competitive firm.
-Refer to Table 9.3.If this firm continues to produce,what is likely to happen to the product's price in the long run?

• A) It will fall.
• B) It will increase.
• C) It will remain constant.
• D) It cannot be determined without information on its long-run demand curve.

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Definitions:

Costs Added

The additional expenses incurred in the production process, including raw materials, labor, and overhead.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a specific activity base.

Job-Order Costing

An accounting method that tracks the costs associated with producing a specific batch of products or performing a specific service.

Manufacturing Overhead Costs

Indirect costs associated with manufacturing, including costs of running the factory, maintenance, and utilities, that cannot be directly traced to a product.