Which of the Following Is a Characteristic of a Monopoly

question 44

Multiple Choice

Which of the following is a characteristic of a monopoly?

• A) Low fixed costs as a portion of total costs.
• B) Free entry and exit.
• C) Barriers to entry.
• D) Declining marginal cost.

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Definitions:

Historical Cost

is the original monetary value of an asset or investment at the time of its acquisition, without adjustments for inflation or market fluctuations.

Common-Size Balance Sheet

A financial statement that presents all items as percentages of a common base figure rather than absolute numerical figures, facilitating comparison.

Shareholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, representing the ownership interest of shareholders.

Total Assets

The sum of all assets owned by a company, including cash, inventory, property, and intangible assets, represented on the balance sheet.