In the Long Run It Is Not Possible for a Perfectly

question 112

Multiple Choice

In the long run it is not possible for a perfectly competitive firm to

• A)alter its plant size.
• B)adopt new technology.
• C)replace its antiquated equipment.
• D)adjust its output.
• E)set the product price.

---

Definitions:

Materials Cost

Materials cost refers to the total expense of raw materials and components used in the manufacturing process of goods.

Equivalent Units

A term used in cost accounting to express the amount of work done during a period by components that were not finished, converting partially completed goods into the equivalent of fully completed units.

Weighted Average Method

An inventory costing method that averages the cost of inventory items to determine the value of goods sold and ending inventory.

Production Period

The phase in which a company is engaged in the creation or manufacturing of goods.