For a Perfectly Competitive Industry, a Decline in Technology Will

question 207

Multiple Choice

For a perfectly competitive industry, a decline in technology will cause

• A) a movement up the short-run industry supply curve.
• B) a movement down the short-run industry supply curve.
• C) the industry short-run supply curve to shift to the right.
• D) the industry short-run supply curve to shift to the left.

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Definitions:

Predetermined Overhead Rate

An estimated overhead rate used to allocate manufacturing overhead costs to products based on a planned activity level.

Direct Labor Cost

The total cost of all the labor that is directly involved in the production of goods or services, including wages and other related expenses.

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from revenue, indicating the efficiency of production and sales activities.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product.