Which of the Following Is Not Correct

question 544

Multiple Choice

Which of the following is not correct?

• A)The demand curve facing a competitive firm is perfectly elastic.
• B)The demand curve facing a monopolist is the market demand curve.
• C)A monopolist can charge any price and sell any quantity that it chooses.
• D)A monopolist can alter the market price by adjusting the quantity that it produces.

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Definitions:

Direct Labor Rate

The cost per hour for direct labor, which includes wages of workers who are directly involved in the production of goods.

Efficiency Variances

Represents the difference between the actual input costs and the standard input costs anticipated for the production achieved.

Sales Price Variances

The difference between the actual price at which goods or services are sold and the expected (standard) sale price.

Sales Volume Variances

This is the difference between the actual sales volume and the budgeted sales volume, affecting revenue and expense projections.