The Key Characteristics of a Monopolistically Competitive Market Structure Include

question 182

Multiple Choice

The key characteristics of a monopolistically competitive market structure include

• A)many small (relative to the total market)sellers acting independently.
• B)all sellers sell a homogeneous product.
• C)barriers to entry are strong.
• D)sellers have no incentive to advertise their products.

---

Definitions:

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the quantity expected, multiplied by the standard cost per unit.

Standard Quantity

The expected amount of materials or input needed to produce a unit of output.

Actual Materials

The actual amount of materials used in the production process, measured in physical units or cost.

Standard Price

A predetermined cost for a unit of material, labor, or overhead anticipated in the budgeting process, against which actual costs are compared.