An Industry with a Single Producer That Sells a Single

question 30

Multiple Choice

An industry with a single producer that sells a single product with no substitutes is a:

• A)perfectly competitive industry.
• B)monopoly.
• C)oligopoly.
• D)monopolistically competitive industry.

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Definitions:

Direct Expenses

Costs that can be directly attributed to the production of specific goods or services, such as raw materials and direct labor.

Excess Capacity

The situation where a company can produce more goods or services than currently demanded, indicating underutilization of resources.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision or choosing one option over another.

Outlay Cost

Expenses directly associated with the production of goods or services, such as materials and labor.