Because of a Patent, XYZ Plc Is the Only Manufacturer

question 84

Multiple Choice

Because of a patent, XYZ plc is the only manufacturer of milk cartons with a special pourer. XYZ plc can earn supernormal profit on the sale of milk cartons with these pourers:

• A) in the long run but not the short run because the monopolist will face competition in the short run
• B) in the short run but not in the long run because new firms will enter the industry in the long run
• C) in the long run because entry into the industry by new firms is blocked
• D) only in the long run because government regulations prevent monopolists from earning supernormal profits in the short run

Comprehend the principles of responsibility accounting and its reports at different management levels.

Understand the negotiated price approach and its application in transfer pricing among decentralized units.

Identify the role and impact of support departments within organizations.

Understand the allocation of operating expenses and support department charges in profit centers.

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Definitions:

PET Scans

Short for Positron Emission Tomography, a type of imaging test that helps reveal how your tissues and organs are functioning by using a small amount of radioactive material.

Amygdala

A structure in the brain involved in processing emotions, particularly those related to survival, such as fear and aggression.

Sensory Input

The process by which sensory organs receive stimuli and transmit this information to the brain.

Thalamus

A brain structure that acts as a relay center, directing sensory signals to the appropriate areas of the brain cortex.