Assume the Market Is in Equilibrium in the Graph Shown

question 29

Multiple Choice

Assume the market is in equilibrium in the graph shown at demand D and supply S₁. If the supply curve shifts to S₂, and a new equilibrium is reached, which of the following is true?

• A) Consumer surplus increases, and total surplus increases.
• B) Consumer surplus decreases, and total surplus increases.
• C) Consumer surplus increases, and total surplus decreases.
• D) Consumer surplus decreases, and total surplus decreases.

Analyze the effect of different bases (machine-hours, direct labor-hours) on overhead rate calculation and job costing.

Understand the principles of job-order costing.

Calculate predetermined overhead rates for different departments or activities.

Allocate manufacturing overhead to specific jobs based on relevant activity bases.

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Definitions:

Limited Partnership

A business structure where one or more partners have limited liabilities and responsibilities, and there is at least one general partner with unlimited liability.

General Partner

A member of a partnership who has unlimited liability and is actively involved in the management of the partnership.

Limited Partnership

A form of partnership where there is at least one general partner (who assumes unlimited liability for the debt) and one or more limited partners (whose liability is limited to the amount they have invested).

Certificate of Limited Partnership

A legal document filed with a state governmental authority that establishes the existence of a limited partnership.