Suppose a Competitive Market Has a Horizontal Long-Run Supply Curve

question 125

Multiple Choice

Suppose a competitive market has a horizontal long-run supply curve and is in long-run equilibrium.If demand decreases,we can be certain that in the short-run,

• A)at least some firms will shut down.
• B)price will fall below marginal cost for some firms.
• C)price will fall below average total cost for some firms.
• D)at least some firms will exit the industry.

Identify the types of businesses or products that typically use job order costing.

Grasp the concept of customized products and the implication on production systems.

Calculate the total job cost using direct materials, direct labor, and applied overhead.

Understand the composition and purpose of a job cost sheet.