A System That Mass-Produces a Single, Homogeneous Output in a Continuous

question 135

Multiple Choice

A system that mass-produces a single, homogeneous output in a continuous process is a(n) :

• A) continuous flow process.
• B) cost management system.
• C) two-stage allocation system.
• D) operation costing.

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms make normal profits in a competitive market.

P = ATC

A condition where price equals average total cost, indicating that firms are covering all their costs but not making economic profit.

Disequilibrium

A state where market supply and demand are not balanced, leading to excess supply or demand and price fluctuations.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies as output quantity changes.