Authors Are Allowed to Be Monopolists in the Sale of Their

question 650

Multiple Choice

Authors are allowed to be monopolists in the sale of their books in order to

• A)encourage authors to write more and better books.
• B)correct for the negative externalities that the Internet and television impose.
• C)satisfy literary advocacy groups that exercise their lobbying power.
• D)promote a society in which people think for themselves and learn from whichever books they please.

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Definitions:

Partial Equity Method

An accounting method used for investments, where the investor recognizes part of the investee's income based on the percentage owned.

Unamortized Trademark

The portion of a trademark's cost that has not yet been expensed over its useful life.

Equity Method

An accounting technique used by firms to assess the profits earned through their investment in other companies by reporting these earnings as income.

Amortization

The gradual reduction of a debt over a period of time through regular payments.