Use the Following to Answer Questions

question 160

Multiple Choice

Use the following to answer questions:
-(Table: Market for Banana Muffins) Use Table: Market for Banana Muffins.Suppose that the government decides to reduce banana muffin consumption as part of a war on obesity.After careful study,the government decides to impose a quota of 5 000 on production of banana muffins this year.What price will producers charge if they obey the quota law?

• A) $1.20
• B) $1.30
• C) $1.50
• D) The answer cannot be determined with this information.

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Definitions:

Financial Accounting

The field of accounting that focuses on providing information to external users to make informed economic decisions.

Productive

Relating to the efficiency or rate at which goods or services are produced, often measured in terms of output per time period.

Profit

The financial benefit realized when income earned is greater than the expenses, taxes, and costs incurred in generating that income.