Which of the Following Is True

question 224

Multiple Choice

Which of the following is true?

• A) The price charged by a monopolistically competitive firm is equal to the price charged by a perfectly competitive firm in the long run.
• B) The price charged by each firm in a monopolistically competitive market is identical in the long run.
• C) The profit earned by a firm in a monopolistically competitive market is equal to the profit earned by a firm in a perfectly competitive market in the long run.
• D) The profit earned by a firm in a monopolistically competitive market is equal to the profit earned by a monopolist in the long run.

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Definitions:

Direct Labor Rate Variance

The cost associated with the difference between the actual rate and the standard rate paid for direct labor multiplied by the actual direct labor hours used in producing a commodity.

Actual Costs

The true amount of money spent on a project or activity, as opposed to estimated or budgeted costs.

Standard Costs

Standard costs are predetermined estimates of the cost to manufacture a single unit or a number of units of a product during a specific time period.

Variance Standard

A method used in budgeting and accounting to analyze the difference between planned financial outcomes and actual results.