When a Natural Monopoly Exists, It Is

question 126

Multiple Choice

When a natural monopoly exists, it is

• A)always cost effective for government-owned firms to produce the product.
• B)never cost effective for one firm to produce the product.
• C)always cost effective for two or more private firms to produce the product.
• D)never cost effective for two or more private firms to produce the product.

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Definitions:

Job F

Based on context, this could refer to a specific job identifier in job costing, tracking costs and revenue associated with a particular job.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a selected activity base.

Direct Labor-hour

The number of labor hours spent on the direct production of goods or services.

Manufacturing Overhead

Costs incurred from the manufacturing process, which exclude both direct labor and materials, are categorized as indirect costs.