In Long- Run Equilibrium a Firm That Is a Perfect

question 78

Multiple Choice

In long- run equilibrium a firm that is a perfect competitor in its input and output markets will choose an input bundle such that for each input:

• A)input price is equal to MRP.
• B)MRP is greater than the VMP.
• C)the marginal products of all inputs are identical.
• D)MRP is less than VMP.

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Definitions:

Activity Rate

The cost driver rate used in activity-based costing to allocate overhead costs to products or services.

Activity Cost Pools

A method in cost accounting used to group all related costs associated with specific activities.

Activity-Based Costing

A pricing method that allocates expenses to goods or services according to the resources they use.

Machine-Hours

A measure of production time, indicating the total hours that machines are operational within a set period.