$\text {Demand and Cost Data for Sylvie's Shampoo Company}$

question 94

Multiple Choice

$\text {Demand and Cost Data for Sylvie's Shampoo Company}$

$\begin{array}{cccc}\text { Price } & \begin{array}{c}\text { Demand Data } \\\text { Quantity }\end{array} & \begin{array}{c}\text { Cost Data } \\\text { Output }\end{array} & \text { Total Cost } \\\$ 22 & 6 & 6 & \$ 96 \\\$ 20 & 7 & 7 & \$ 104 \\\$ 18 & 8 & 8 & \$ 114 \\\$ 16 & 9 & 9 & \$ 126 \\\$ 14 & 10 & 10 & \$ 140\end{array}$

$\text {Table \(26.2\) }$
$\text {A Monopolistically Competitive Firm}$ Refer to Table 26.2.At the profit-maximizing output and price, Sylvie's Shampoo Company.will earn a
________ economic profit, and ________ the market will occur.

• A)negative; entry into
• B)negative; exit from
• C)positive; entry into
• D)positive; exit from

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Definitions:

Responsibility Centers

These are parts or segments of a business for which individual managers are responsible, usually in terms of costs, revenues, or investment.

Cost Center

A business unit or department within an organization that does not directly generate revenue but incurs costs, used for budgeting and cost control.

Profit Center

A segment or division within a company that is responsible for generating its own revenues and profits, and is evaluated based on its profitability.

Investment Center

A business unit or segment whose manager has control over cost, revenue, and investments in assets, and is evaluated on profitability and return on investment.