explain the difference between prime cost and conversion cost
Variable cost Direct labor and overhead are often called conversion cost,[3] while direct material and direct labor are often referred to as prime cost.[3]
Competition (economics) Later microeconomic theory distinguished between perfect competition and imperfect competition, concluding that perfect competition is Pareto efficient while imperfect competition is not.[citation needed] Competition, according to the theory, causes commercial firms to develop new products, services and technologies, which would give consumers greater selection and better products. The greater selection typically causes lower prices for the products, compared to what the price would be if there was no competition (monopoly) or little competition (oligopoly).