Which of the Following Is Likely to Occur If a Monopoly

question 108

Multiple Choice

Which of the following is likely to occur if a monopoly suddenly loses its ability to deny potential competitors entry into the market?

• A)The market price of the product will fall.
• B)The total market quantity of output produced will fall.
• C)Profits for the market will increase.

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Definitions:

Unearned Revenue

Money received by a company for goods or services yet to be provided. It is considered a liability until the service is delivered or the product is provided.

Investments

Assets purchased with the aim of generating income or appreciation, including securities, real estate, and other financial assets.

Wages Payable

A liability account that records the amount of unpaid wages earned by employees at the end of a reporting period.

Debit to Cash

An accounting entry that increases the cash balance in the company's ledger, reflecting an inflow of cash.