CVP Analysis and Marginal Analysis Paper 11

1

The manner in which cartels set and maintain price above the competitive market price is to






2

Mrs. Robinson is hired as a consultant to a firm that is currently competing perfectly. At the current output level the price is $10, the average variable cost is $6, the average total cost is $10, and marginal cost is $8. To maximize profits, Mrs. Robinson will recommend that the firm should






3

Mr. B is hired as a consultant to a firm that is, currently, competing perfectly. At the current output level the price is $20, the average variable cost is $15, average total cost is $22, and marginal cost is $20. In order to maximize profits, Mr. B will recommend that the firm should






4

As of December 31 of the year just ended, a monopolist was producing at a level where the selling price was $18, it had an average total cost of $15, an average variable cost of $12, marginal revenue of $13, and a marginal cost of $14. To maximize profits in the new year, the monopolist should






5

At its current production, Abba Co., a monopolist, has a marginal cost of $18 and marginal revenue of $21. Abba will maximize profits by






6

Which one of the following is the most important difference between a monopoly and a firm facing perfect competition, assuming both are unconstrained profit maximizers?






7

A profit-maximizing monopolist will produce at an output level where






8

Breakeven analysis assumes that over the relevant range






9

On January 1, 2012, Lake Co. increased its direct manufacturing labor wage rates. All other budgeted costs and revenues were unchanged. How did this increase affect Lakeís budgeted breakeven point and budgeted margin of safety?
Budgeted Breakeven point . . .Budgeted margin of safety






10

Which one of the following is an advantage of using variable costing?






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