What Is a Pure Monopoly

question 57

Multiple Choice

What is a pure monopoly?

• A) It is an industry that is characterized by a few suppliers.
• B) It is an industry that has no barriers to entry.
• C) It is a market structure in which differentiated products are available.
• D) It is a market structure that exists when the entry and survival of potential competitors is extremely unlikely.

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Definitions:

Subscriptions Receivable-Common Stock

Represents the amount owed by investors who have subscribed to a company’s common stock but have not yet paid in full.

Paid in Capital in Excess

The amount received from investors for stock, exceeding its par or stated value, also known as additional paid-in capital.

Par Value

The face value of a stock or bond as specified by the issuing company, often used in accounting to record the equity or debt issued.

Preferred Stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, often with dividends that are paid out before those of common shares.