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

question 97

Multiple Choice

Use the information below to answer the following question(s) .Ferryman Products manufactures coffee tables.Ferryman Products has a policy of adding a 20% markup to full costs and currently has excess capacity.The following information pertains to the company's normal operations per month:

-What is the Ferryman Products full product cost for long-run pricing purposes?

• A)$134.75
• B)$242.25
• C)$262.25
• D)$122.75
• E)$222.25

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Definitions:

Marginal Cost

The added financial burden of producing another unit of a product or service.

Efficient Price

The price at which the supply of a good matches its demand, leading to an optimal distribution of resources in a market.

Consumer Surplus

Consumer surplus represents the discrepancy between what consumers are prepared and capable of spending for a product or service and the actual amount they end up paying.

Artificially Scarce Goods

Products or services whose availability is limited by the seller to increase demand or price, rather than by natural scarcity.