In the Short Run for a Particular Market, There Are

question 434

Multiple Choice

In the short run for a particular market, there are 5,000 firms. Each firm has a marginal cost of $7 when it produces 200 units of output. One point on the market supply curve is

• A)quantity = 5,000; price = $7.
• B)quantity = 35,000 price = $35,000.
• C)quantity = 1,000,000, price = $7.
• D)quantity = 1,000,000, price = $35,000.

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Definitions:

High-low Method

An approach in cost accounting to determine variable and fixed charges, based on analyzing the activity's minimum and maximum levels.

Job-Order Costing

A costing system used in situations where many different products, jobs, or services are produced each period.

Process Costing

A costing method used when essentially homogeneous products are produced on a continuous basis.

Cost Reconciliation Report

A financial report that reconciles the estimated, budgeted, or standard costs with the actual costs incurred.