Flash Company Produces Lamps

question 65

Multiple Choice

Flash Company produces lamps.All of the following are direct costs except:

• A)Wages for assembly.
• B)Electrical cord.
• C)Factory rent.
• D)Lamp shade.
• E)Switch.

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Definitions:

Marginal Cost

An elevation in the cumulative expense resulting from manufacturing one more unit of a product or service.

Deadweight Loss

A decrease in economic efficiency resulting from the failure to reach equilibrium in the market for a good or service.

Monopolies

Market structures characterized by a single seller who controls the market supply of a good or service and can influence the price.

Efficiency

The optimal allocation of resources to maximize desired outputs without wasting any input.