The Absence of Freedom of Entry and Exit Is Key

question 81

Multiple Choice

The absence of freedom of entry and exit is key to fact that there is no pressure for economic profit to go to zero under

• A)Perfect competition and monopolistic competition
• B)Oligopoly and monopoly
• C)Monopoly and Perfect competition
• D)Monopoly and monopolistic competition

---

Definitions:

Machine Hours

A measure of the amount of time machines are operated in the production process, commonly used as an allocation base for assigning overhead costs.

Indirect Labor

Labor costs attributed to anything other than the direct manufacturing of goods or provision of services, such as maintenance, supervision, and administrative tasks.

Factory Utilities

Expenses incurred for electricity, gas, water, and sewage services used in the operation of a manufacturing plant or factory.

Plantwide Overhead Rate

A single rate used to allocate manufacturing overhead costs to all units produced, regardless of the department in which they were made.