Which of the Following Is Likely to Be Present in a Perfectly

question 44

Multiple Choice

Which of the following is likely to be present in a perfectly competitive market?

• A)patents
• B)government licenses
• C)non-price competition such as advertising
• D)high capital costs
• E)commodities

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Definitions:

Activity-based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, helping to more accurately determine the cost of products or services.

Customer Margin

The profit margin attributed to a particular customer, calculated by subtracting the costs associated with serving that customer from the revenue generated.

Activity-based Costing

Activity-based costing is a more precise method of product costing that identifies activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption.

Idle Capacity

The portion of a company's resources or production capability that is not currently being utilized to its full potential.