Activity based costing: Question 14 options: corrects the distortions built into product costing by the way that the learning curve is applied to direct labor costs. corrects the distortions built into product costing by the way that direct costs are allocated. eliminates nonvalue-adding activities; reduces activity occurrences, and reduces the cost driver rate. is important to cost accountants, but has little practical use for buyers. eliminates nonvalue-adding activities, increases activity occurrences, and increases the rate of return.

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.