In Instances When Having a Single Firm in the Market

question 165

Multiple Choice

In instances when having a single firm in the market makes sense,governments ________ to minimize negative externalities.

• A) will grant a patent or copyright
• B) require licenses
• C) deregulate industries
• D) hand out subsidies
• E) break down barriers to entry

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Definitions:

Plant Asset

Long-term tangible asset that is used in the production process of a company, such as machinery, buildings, and equipment, contributing to the company's operations.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Cost Allocation

The process of assigning indirect costs to different departments, products, or cost objects within a company.

Asset Devaluation

Asset devaluation refers to a reduction in the value of an asset over time, often due to changes in market demand or obsolescence.