Faram Corporation Has Provided the Following Production and Total Cost

question 34

Multiple Choice

Faram Corporation has provided the following production and total cost data for two levels of monthly production volume.The company produces a single product. The best estimate of the total cost to manufacture 2,300 units is closest to:

• A)$446,660
• B)$465,840
• C)$462,415
• D)$478,170

---

Definitions:

Antitrust Legislation

Antitrust legislation comprises laws intended to regulate competitive conduct among businesses, prevent monopolies, and promote fair competition.

Sherman Act

The Sherman Act is a landmark federal statute in the antitrust law of the United States, prohibiting monopolistic business practices and promoting competition.

Monopoly Power

The ability of a single company or entity to control or dominate an entire market, preventing competition.

Trust-Busting

Government activities aimed at breaking up monopolies and trusts to restore competition in the market.