A Monopoly

question 59

Multiple Choice

A monopoly

• A) must determine the price it will charge.
• B) cannot price discriminate because such a pricing strategy is illegal in Australia.
• C) has no control over the price it can charge.
• D) faces extensive competition from firms making close substitutes.
• E) Both answers B and C are correct.

---

Definitions:

Income Statement Accounts

Accounts that are included in the income statement, showing revenues and expenses for a specific period.

Purchases Returns

Transactions where a buyer returns goods previously purchased to the seller, often due to defects or other issues, resulting in a credit to the buyer's account.

Sales Returns

Goods returned by the customer to the seller for a refund or credit, typically due to defects or other dissatisfaction.

Depreciation Expense-Equipment

The allocation of the cost of equipment over its useful life, reflecting wear and tear and loss of value over time.