The Situation in Which One Firm Can Produce the Total

question 71

Multiple Choice

The situation in which one firm can produce the total output of the market at lower cost than several firms is called

• A)natural monopoly.
• B)pure monopoly.
• C)ruling monopoly.
• D)cost monopoly.

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Definitions:

Standard Price

A predetermined cost that serves as a benchmark for evaluating actual cost performance in purchasing or production.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services.

Manufacturing Cost Variance

The difference between the actual costs of production and the standard or expected costs, indicating efficiency or inefficiency in the manufacturing process.

Direct Materials Cost Variance

The difference between the actual cost of direct materials used in production and the standard cost expected to be used.