A Benefit to Consumers of Monopolistically Competitive Markets Is That

question 15

Multiple Choice

A benefit to consumers of monopolistically competitive markets is that

• A) consumers only have to choose from one product.
• B) consumers have a variety of products from which to choose.
• C) goods are sold at the lowest possible average cost of production.
• D) price is equal to marginal cost in equilibrium.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual hours worked to produce an item and the standard hours expected, multiplied by the variable overhead rate.

Direct Labour Efficiency Variance

The difference between the expected hours to produce a specific number of units and the actual hours used.

Direct Material Used

Direct material used involves the consumption of raw materials that are transformed into and directly identifiable with the finished product in the manufacturing process.

Variable Manuf. Overhead

Variable manufacturing overhead refers to the indirect costs that change with the level of production, such as utilities for the manufacturing plant.