A Monopoly ________ Make Positive Economic Profit in the Long

question 14

Multiple Choice

A monopoly ________ make positive economic profit in the long run because ________.

• A)can;barriers to entry prevent other firms from entering the market and sharing the profit
• B)cannot;eventually demand will decrease and prices will fall
• C)cannot;other firms will enter the market until all firms are making zero economic profit
• D)can;new technology constantly lowers costs for the monopoly firm and for its competitors
• E)can;demand constantly increases and price constantly rises

Understand the distinction between direct and indirect costs, including examples of each.

Recognize the categorization of costs as period or product costs and their implications on financial statements.

Understand the purpose and functionality of a job order costing system in various organizational settings.

Distinguish between job order costing and process costing systems and their appropriate application contexts.

---

Definitions:

Crustal Levels

Various layers within the Earth's crust, each having distinct properties and compositions.

Tectonic Forces

The movement and dynamics within the Earth's crust that result in the formation of geological features.

Burial

The act of placing something under the ground, often related to interring a body or concealing an object.

Contraction

The process of becoming smaller or shorter, often in reference to the cooling and solidifying of the Earth's crust which can lead to tectonic activities.