In the Long Run

question 183

Multiple Choice

In the long run

• A) firms in both monopolistic competition and perfect competition achieve allocative efficiency but not productive efficiency.
• B) only firms in a perfect competition achieve both allocative and productive efficiencies.
• C) only firms in monopolistic competition achieve both allocative and productive efficiencies.
• D) neither firms in perfect competition nor monopolistic competition achieve allocative efficiency.

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Definitions:

Produced Units

The total number of units of a product that have been completed during a specific period, ready for sale or distribution.

Data Period

A defined span of time during which data is collected or observations are made.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, multiplied by the actual hours worked.

Produced Units

The total quantity of items manufactured or completed in a given period by a production process.