A Major Difference Between Monopoly and Monopolistic Competition Is

question 132

Multiple Choice

A major difference between monopoly and monopolistic competition is

• A)One maximizes profits by setting MR equal to MC,and the other does not.
• B)The number of firms in the market.
• C)One type of firm has market power,and the other does not.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the standard or expected cost, which can occur due to wage rate changes or differences in worker efficiency.

Labor Efficiency Variance

The difference between the actual labor hours taken to produce something and the standard labor hours expected, multiplied by the labor rate.

Direct Labor

The wages and salaries for workers who are directly involved in the production of goods.

Raw Materials

The basic materials and substances used in the initial stages of production to manufacture goods.