An Important Difference Between Competitive and Monopoly Markets Is That

question 97

Multiple Choice

An important difference between competitive and monopoly markets is that in a competitive market:

• A)no gains from trade are realized while all are in a monopoly.
• B)all gains from trade are realized while they are not in a monopoly.
• C)some gains from trade are realized while all are in a monopoly.
• D)some gains from trade are realized while they are not in a monopoly.

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Definitions:

Direct Labor-hours

A measure of the labor time directly involved in the production of goods, used as a base for allocating overhead in some costing systems.

Fixed Overhead

Expenses that remain constant for a certain level of production or period of time, such as rent, salaries, and insurance, not directly tied to the level of production.

Work In Process

Inventory that includes goods partially through the production process but not yet complete.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain constant regardless of the level of production, such as rent, utilities, and salaries of managers.