The Table Given Below Shows the Prices Charged and Marginal

question 111

Multiple Choice

The table given below shows the prices charged and marginal cost incurred by a monopolist for different units of output.Table 11.3

-Suppose you inherit the only spring of mineral water in an area and want to maximize profits from this costless product. You would ask your customers to bring their containers with them and:

• A)charge them the highest price possible to sell some output.
• B)charge them the lowest price possible to sell as much as you can.
• C)ask them how much they would like to pay and accept it.
• D)charge the price at which MR is zero.
• E)charge the price at which MR is maximum.

---

Definitions:

Finished Goods Account

An account used to track the value of products that are completed and ready for sale.

Factory Overhead Ledger

An accounting ledger that details the indirect costs associated with manufacturing, which may include utilities, depreciation, and salaries of non-direct labor.

Unit Costs

The cost associated with a single unit of product or service, including all costs incurred to produce, deliver, and sell the product.

Job Order Cost Systems

An accounting method that assigns costs to specific batches or job orders, tracking the direct materials, direct labor, and manufacturing overhead per job.