One Defining Characteristic of Pure Monopoly Is That

question 65

Multiple Choice

One defining characteristic of pure monopoly is that

• A)the monopolist is a price taker.
• B)the monopolist uses advertising.
• C)the monopolist produces a product with no close substitutes.
• D)there is relatively easy entry into the industry, but exit is difficult.

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting its liabilities.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including loans, accounts payable, and mortgages.

Property Plant and Equipment

These are long-term tangible assets owned by a business, used in producing goods or services and not expected to be consumed or converted into cash within a year.

Accumulated Depreciation

The total amount of an asset's cost that has been expensed over its useful life, reflecting wear and tear or obsolescence.