Answer the Following Questions Using the Information Below

question 146

Multiple Choice

Answer the following questions using the information below:
The Delmonico Company uses the high-low method to estimate the cost function. The information for 2011 is provided below:

-What is the estimate of the total cost when 300 machine-hours are used?

• A)$4,000
• B)$8,000
• C)$12,000
• D)$16,000

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Definitions:

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than its competitors.

Specialization

The process of focusing on and becoming expert in a particular subject or skill, often resulting in increased efficiency and productivity in economic contexts.

Exchange

The act of giving one thing and receiving another (especially of the same type or value) in return.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its competitors, contributing to efficiency in international trade.