Variable and absorption costing grant company sells its product for $50 per unit. variable manu-

facturing costs per unit are $30, and fixed manufacturing costs at the normal operating level of 18,000

units are $90,000. variable selling expenses are $4 per unit sold. fixed administrative expenses total

$155,000. grant had 7,000 units at a per-unit cost of $35 in beginning inventory in 2016. during

2016, the company produced 18,000 units and sold 20,000. would net income for grant company in

2016 be higher if calculated using variable costing or using absorption costing? calculate reported

income using each method.

Consider how health insurance affects the quantity of health care services performed. suppose that the typical medical procedure has a cost of $160, yet a person with health insurance pays only $40 out of pocket. her insurance company pays the remaining $120. (the insurance company recoups the $120 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) consider the following demand curve in the market for medical care. use the black point (plus symbol) to indicate the quantity of procedures demanded if each procedure has a price of $160. then use the grey point (star symbol) to indicate the quantity of procedures demanded if each procedure has a price of $40. q d at p=$160 q d at p=$40 0 10 20 30 40 50 60 70 80 90 100 200 180 160 140 120 100 80 60 40 20 0 price of medical procedures quantity of medical procedures demand if the cost of each procedure to society is truly $160, the quantity that maximizes total surplus is procedures. economists often blame the health insurance system for excessive use of medical care. given your analysis, the use of care might be viewed as excessive because consumers get procedures whose value is than the cost of producing them.

Which ranks these careers that employers are most likely to hire from the least to the greatest?

The demand curve determines equilibrium price in a market. is a graphical representation of the relationship between price and quantity demanded. depicts the relationship between production costs and output. is a graphical representation of the relationship between price and quantity supplied.