Table 252 Refer to Table 25

question 91

Multiple Choice

$$\begin{array}{l}\begin{array} { l l r } \text { Pool Sweeper } &\text { Output } &\text { Market share } \\\text { Producer }&\text { (Revenue) }&\text { (percent) }\\\hline \text { North Star } & \$ 20,000 &\_\_\_\_\_\\\text { Hurricane } & \$ 16,000 &\_\_\_\_\_\\\text { Blue Lagoon } & \$ 2,000 &\_\_\_\_\_\\\text { Clean Sweep } & \$ 2,000&\_\_\_\_\_\\\end{array}\end{array}$$
Table 25.2 Refer to Table 25.2.Assume there are only four firms in the pool sweeper industry.If Clean Sweep manages to increase its sales to $3,000 per week at the current price and the size of the market does not change, the combined weekly sales of the three other firms will

• A) Fall by $3,000 per week.
• B) Also rise.
• C) Not change.
• D) Fall by less than $3,000 per week.

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Definitions:

Indirect Costs

Expenses that are not directly traceable to a specific product, project, or activity, often including utilities, rent, and administrative salaries.

Responsibility Centres

Sections or divisions of a business for which a manager has authority and responsibility, typically including revenue, expense, profit, and investment centers.

Seasonal

Relating to or dependent on a particular season or time of year, often affecting businesses, climate, or activities in a cyclical manner.

Cyclical

Characterized by or subject to cycles, often used to describe economic activities that fluctuate with the overall state of the economy.