Construction assembles residential houses. it uses a job-costing system with two direct-cost categories (direct materials and direct labor) and one indirect-cost pool (assembly support). direct labor-hours is the allocation base for assembly support costs. in december 2016, avery budgets 2017 assembly-support costs to be $ 8 comma 000 comma 000 and 2017 direct labor-hours to be 160 comma 000. at the end of 2017, avery is comparing the costs of several jobs that were started and completed in 2017.

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.