The Standard Cost for a Unit of Output Is the Standard

question 87

True/False

The standard cost for a unit of output is the standard price per unit of input times the standard number of inputs per one unit of output.

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Definitions:

Price Ceiling

A legal maximum price that can be charged for a good or service, above which it cannot rise, often set by government.

Shortage

A market condition in which the demand for a product exceeds its supply at a particular price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to buy.

Living Wage

A wage level that is high enough to maintain a normal standard of living.