If Any of the Assumptions of Perfect Competition Are Violated

question 109

Multiple Choice

If any of the assumptions of perfect competition are violated,

• A) supply-and-demand analysis cannot be used to study the industry.
• B) graphs with flat demand curves cannot be used to study the firm.
• C) graphs with downward-sloping demand curves cannot be used to study the firm.
• D) there may still be enough competition in the industry to make the model of perfect competition usable.
• E) one must use the monopoly model instead.

Determine the selling price of a job using manufacturing costs and predetermined markup percentages.

Understand the differences between departmental and plantwide overhead rates.

Calculate the total manufacturing overhead for a production department based on estimated costs.

Understand the impact of machine hours vs. direct labor hours as allocation bases for overhead rates.

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Definitions:

Capacity

The maximum amount that something can contain or produce.

Bits of Information

The smallest units of data in computing, representing a binary choice between two alternatives, such as 0 or 1.

Primacy Effect

A cognitive phenomenon where the first items presented in a series are more likely to be remembered than items presented later on.

First Impressions

First Impressions are the initial thoughts and judgments one forms about another person or situation, often based on limited information but impactful on subsequent perceptions.