A Firm Which Is a Competitor in Its Output Market

question 11

Multiple Choice

A firm which is a competitor in its output market and a monopsonist in an input market is:

• A)efficient.
• B)inefficient because VMP > MRP and MFC > w.
• C)inefficient because VMP > MRP.
• D)inefficient because MFC > w.

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Definitions:

Adjusting Entries

Journal entries made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Straight-line Method

A depreciation method where the value of an asset is reduced evenly over its useful life.

Journal Entries

Records of financial transactions in the accounting system, indicating the accounts and amounts to be debited and credited.

Equipment Cost

The purchase price of machinery and tools required for manufacturing or providing services, excluding ongoing operating expenses.