When a Single Firm Can Supply a Good or Service

question 56

Short Answer

When a single firm can supply a good or service to an entire market at a lower cost than could two or more firms, the industry is known as a

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Definitions:

Quality Inspection

The process of examining and testing goods or services to ensure they meet specified standards of quality before they are sold or delivered.

Machining

The process of removing material from a workpiece to create a desired shape or finish using tools and machines such as lathes, mills, or drills.

Product Costs

Expenses directly linked to the production of goods, covering materials, labor, and manufacturing overhead costs.

Activity-based Costing

A pricing technique that determines activities within a company and allocates the expense of each activity across all products and services based on their actual usage.