If Some Firm in an Industry Has the Production Function

question 41

True/False

If some firm in an industry has the production function F(x, y) = , where x and y are the only two inputs in producing the good, then that industry cannot be competitive in the long run.

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Definitions:

Inventory System

The methods and technologies used to keep track of the types, quantities, and locations of products a company has in stock.

Perpetual

Referring to a continuous inventory system where updates are made in real-time following each sale or purchase transaction.

Revenue

The total amount of money received by a company from its business activities, such as sales of goods or services, before any expenses are subtracted.

Cost Flow Assumptions

Accounting methods that determine how costs are assigned to inventory and cost of goods sold, such as FIFO, LIFO, and average cost.