The Market Demand Function for Ice Cream Is and the Market

question 23

Multiple Choice

The market demand function for ice cream is and the market supply function for ice cream is ,where both quantities are measured in millions of gallons per year.What is the consumer surplus at the competitive market equilibrium?

• A) $4.2
• B) $6
• C) $4.5
• D) $3

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Definitions:

Direct Materials Price Variance

The difference between the actual cost of direct materials and the expected (or standard) cost, used in manufacturing and budgeting.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, multiplied by the standard cost per unit of material.

Total Cost Variance

The overall difference between the actual costs incurred and the standard or budgeted costs, across all categories of expenses.

Variable Factory Overhead

Costs of manufacturing that vary with the level of production output, such as utility costs for machinery.