If a Firm Functions in an Oligopoly,it

question 59

Multiple Choice

If a firm functions in an oligopoly,it:

• A)is one of a few firms that produces a good with close substitutes.
• B)has no close substitutes in a market.
• C)is one of many suppliers of a good with perfect substitutes.
• D)is the only firm in a geographic region.

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Definitions:

Variable Costing

An accounting method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in product cost calculations.

Absorption Costing

A product costing technique in accounting that involves adding direct materials, direct labor, and both kinds of manufacturing overhead—variable and fixed—to the product's cost.

Fixed Manufacturing Overhead

Costs that do not change with the level of production output, including rent, salaries of permanent staff, and depreciation of factory equipment.

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold, excluding fixed costs.