Although an Improvement in Technology Enables Perfectly Competitive Firms to Earn

question 66

True/False

Although an improvement in technology enables perfectly competitive firms to earn a positive economic profit in the short run,entry by new firms will ensure that those profits are eliminated over time.

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Definitions:

Machine-Hour

A unit of measure representing the operation of a machine for one hour, used in allocating manufacturing overhead costs to products.

Selling Price

The amount of money a customer pays to buy a product or service, determined by various factors including cost, market demand, and competition.

Unit Product Costs

The combined expenses of direct materials, direct labor, and manufacturing overhead incurred in the production of a single product unit.

Job M598

A specific reference to an individual job or project within a job costing system, indicating a unique piece of work for tracking costs.