In Principle,a Comparison of the Long-Run Equilibrium of Competitive and (Single-Price)monopoly

question 36

Multiple Choice

In principle,a comparison of the long-run equilibrium of competitive and (single-price) monopoly industries leads to the following conclusion:

• A)both the competitive industry and the monopoly will allocate resources efficiently.
• B)the competitive industry is consistent with allocative efficiency whereas the monopoly is not.
• C)neither industry is capable of allocative efficiency.
• D)the competitive industry will achieve productive efficiency but the monopoly will not.
• E)both the competitive industry and the monopoly will allocate resources inefficiently.

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Definitions:

Variance Reports

Financial analyses that compare actual performance against planned or budgeted performance.

Form Content

Refers to the specific subject matter covered by a document or form, detailing the various elements and information it encompasses.

Manufacturing Overhead Costs

Expenses related to the manufacturing process that are not directly tied to the production of goods, such as utilities, depreciation of equipment, and factory maintenance.

Standard Hours

The established amount of time required to perform a task under normal conditions.