The Chamberlin Model Has Been Criticized for All but Which

question 44

Multiple Choice

The Chamberlin model has been criticized for all but which one of the following reasons?

• A)The concept of an industry group is ambiguous in the model.
• B)The model adds little to the perfect competition conclusions.
• C)Consumers are not as willing to switch from one product another for slight price changes.
• D)The model predicts no long-run profits but does not account for entry and exit in markets.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of finished goods.

Direct Labor-Hours

Total working hours accrued by employees integral to the manufacturing sequence.

Variable Overhead

Costs of production that vary directly with the volume of output, such as utilities and labor efficiency.

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing products, used as a basis for assigning labor costs to those products.