Item2 9 points Return to questionItem 2 Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials $ 35 per unit Direct labor $ 55 per unit Variable overhead $ 20 per unit Fixed overhead $ 8,000,000 per year Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,750,000 per year Units produced 100,000 units Units sold 70,000 units Sales price $ 360 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing.

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.