In Long-Run Perfectly Competitive Equilibrium, Which of the Following Is

question 52

Multiple Choice

In long-run perfectly competitive equilibrium, which of the following is false?

• A)There is efficient, low-cost production at the minimum efficient scale.
• B)Economic surplus is maximized.
• C)Firms earn economic profit.
• D)Economies of scale are exhausted.

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Definitions:

Controllable Variance

Controllable variance is a measure used in managerial accounting to assess the differences between actual and budgeted amounts that management can influence or control.

Variable Overhead Costs

Variable overhead costs fluctuate with changes in production volume, including costs like utilities and raw materials not directly tied to a product.

Fixed Overhead Costs

Expenses that remain constant irrespective of the volume of production or sales, including rent, salaries, and insurance.

Production Volume

The total quantity of goods or services produced by a company during a specific period.