Examlex

Solved

How Might a Monopolistically Competitive Firm Continually Earn Economic Profit

question 90

Essay

How might a monopolistically competitive firm continually earn economic profit greater than zero?


Definitions:

Materials Price Variance

The difference between the actual cost of direct materials and the expected cost at standard prices.

Materials Quantity Variance

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

Materials Price Variance

The difference between the actual cost of materials purchased and the standard cost, multiplied by the quantity of materials purchased.

Raw Materials Price Variance

The difference between the actual cost of raw materials and the expected (or standard) cost.

Related Questions