A Competitive Equilibrium Is a State of Affairs in Which

question 34

Multiple Choice

A competitive equilibrium is a state of affairs in which

• A) markets clear, and output is maximized.
• B) output is maximized, and all agents are equally well-off.
• C) all agents are equally well-off and agents are price-takers.
• D) agents are price-takers, and markets clear.
• E) output and total factor productivity are maximized.

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Definitions:

Actual Cost Driver

A factor that directly impacts the expenses associated with a specific activity, determining the actual costs incurred.

Budgeted Overheads

The estimated costs for overhead (indirect costs such as utilities, rent, and administrative salaries) that are planned or budgeted for a specific time period.

Wage Payable

The amount of salary or wages that a company owes to its employees at the end of a financial period but has not yet paid.

Manufacturing Overhead

Indirect costs related to manufacturing that cannot be directly traced to specific products, such as factory rent, utilities, and equipment maintenance.