According to the Graph Shown, If the Market Is in Equilibrium

question 33

Multiple Choice

According to the graph shown, if the market is in equilibrium, consumer surplus is:

• A) $30.
• B) $20.
• C) $50.
• D) $60.

---

Definitions:

Setup Cost Per Unit

The cost associated with configuring or preparing equipment for manufacturing a batch of products, divided by the number of units produced.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or facility to allocate indirect costs to products.

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or delivery of services.

Departmental Overhead Rates

Overhead rates calculated for specific departments within a company, allowing for more accurate assignment of overhead costs to products.