Without Market Coordination

question 18

Multiple Choice

Without market coordination,

• A)prices are entirely ignored.
• B)only that which is good for a society as a whole is produced.
• C)it is difficult for individuals to communicate costs and benefits.
• D)money is not used.
• E)self-interest ceases to be a motivating factor.

---

Definitions:

Fixed Manufacturing

Costs that do not vary with the level of production or sales, associated with the operation of a production facility.

Break-Even Level of Sales

The sales amount at which a company's total revenues equal its total expenses, resulting in no net profit or loss.

Variable Production Costs

Costs that fluctuate with the level of production output, including direct materials, direct labor, and variable manufacturing overhead.

Monthly Fixed Cost

Expenses that do not change regardless of the level of production or sales, such as rent or salaries, calculated on a monthly basis.