Economists Call the Time After All Exit or Entry Has

question 159

Multiple Choice

Economists call the time after all exit or entry has occurred:

• A) the short run.
• B) the medium run.
• C) the long run.
• D) the marginal run.

Understand the economic rationale behind offering discounts to specific segments.

Recognize the significance of preventing arbitrage in price discrimination strategies.

Assess the implications of price discrimination on market competition and entry.

Understand the concept of price discrimination and its applications.

---

Definitions:

Plantwide Overhead Rate

A single overhead rate applied to all production activities, calculated by dividing the total factory overhead by an allocation base, such as direct labor hours.

Direct Labor Hours

The total hours of labor directly involved in the manufacturing or production process of goods and services.

Overhead Allocation

The process of distributing indirect costs to cost objects such as products, services, or departments.

Departmental Overhead Rate

The allocation of indirect costs to specific departments based on relevant activity bases, such as labor hours or machine hours, to more accurately assign costs.