For a Monopolist to Sell More Units of Output

question 79

Multiple Choice

For a monopolist to sell more units of output

• A) the price must be increased.
• B) the price must be reduced.
• C) demand must become more elastic.
• D) the other competing firms must sell fewer units.

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Definitions:

Cost of Goods Sold

The total cost associated with producing the goods sold by a business, including materials, labor, and manufacturing overhead.

Direct Labour-hours

The total number of hours worked by employees directly involved in the production process.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the period begins based on estimated costs and activity levels.

Direct Labour Hour

Direct labour hour is a measure of the amount of time workers spend on direct production activities, directly involved in manufacturing goods or providing services.