Competition Is More Likely to Exist When

question 26

Multiple Choice

Competition is more likely to exist when

• A)there is easy entry into and exit out of industries.
• B)a government-issued license is required to set up a firm in an industry.
• C)the government purchases most goods and services.
• D)economic power is concentrated among a few large firms.

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Definitions:

Budgeting

The process of creating a plan to spend your resources, outlining an organization's financial and operational goals.

Standard Variable Overhead Rate

A predetermined rate used to allocate variable overhead costs to the cost of producing goods or services.

Machine Setup

The process of preparing and adjusting machines and equipment for a specific production run or job order.

Planning Budget

A financial plan that estimates revenue and expenses over a specific period in the future, guiding managerial decisions and actions.