Which of the Following Quantities Is an Example of an Activity

question 144

Multiple Choice

Which of the following quantities is an example of an activity driver in activity-based costing?

• A)number of direct labor hours
• B)number of labor transactions
• C)number of machine hours
• D)all of these

Understand the relationship between price, average cost, and marginal cost in the long-run equilibrium of competitive price-searcher markets.

Analyze the impact of low barriers to entry on market structure and firm profits.

Explain how the price-searcher's decision-making process affects output and pricing in the short and long run.

Understand the conditions and outcomes of competitive price-searcher markets in both short-run and long-run equilibriums.

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Definitions:

Efficiency Wages

A theory suggesting that employers pay higher than the market-clearing wage to increase worker productivity, loyalty, and satisfaction, thus reducing turnover and shirking.

Equilibrium Level

The state in which market supply and demand balance each other, and, as a result, prices become stable.

Increase Unemployment

Refers to a situation where the number of individuals in a workforce who are without a job, and are actively seeking employment, rises.

Union Bargains

Union bargains involve negotiations between labor unions and employers on employment terms, such as wages, working conditions, and benefits for the workers.