Additional Firms Often Do Not Try to Compete with a Natural

question 601

Multiple Choice

Additional firms often do not try to compete with a natural monopoly because

• A)they fear retaliation in the form of pricing wars from the natural monopolist.
• B)they are unsure of the size of the market in general.
• C)they know they cannot achieve the same low costs that the natural monopolist enjoys.
• D)the natural monopoly does not make a large profit.

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Definitions:

Journalizing

Journalizing is the process of recording transactions in the company's journal, marking the first step in the accounting cycle by documenting all financial transactions.

Ledger

The principal book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type.

Journalizing

The act of recording financial transactions in a company's journal, detailing debits and credits, part of the first step in the accounting cycle.

Fraudulent Activity

Intentional deception or misrepresentation that an individual or entity makes to gain a benefit or advantage.