A Firm Is a Monopoly If

question 48

Multiple Choice

A firm is a monopoly if

• A) it faces a demand curve for its product that equals market demand.
• B) it is a very large firm.
• C) it takes its rivals' actions into account when choosing its price and output levels.
• D) its production decisions do not affect the price of its product.

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Definitions:

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Sarbanes-Oxley

A U.S. law enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations, also known as the Sarbanes-Oxley Act.

Publicly Held Companies

Companies whose ownership is distributed among the general public through publicly traded shares or stocks.

Internal Control Environment

The overall attitude, awareness, and actions of directors, management, and personnel regarding internal controls and their importance in the organization.