Which of the Following Statements Is True

question 85

Multiple Choice

Which of the following statements is true?

• A)A monopolist can charge whatever price it wants without losing any customers, by virtue of its monopoly position.
• B)A monopolist may be able to increase its profits by increasing its price.
• C)In the monopoly market structure, there are low barriers to entry.
• D)A monopolist is assured of positive economic profits.

---

Definitions:

Variable Overhead

Indirect operating costs that change in proportion to the level of production or business activity.

Total Variable Overhead Variance

The difference between the actual variable overhead incurred and the standard variable overhead allocated for the output achieved.

Standard Costing System

An accounting method that applies estimated costs to product costs for the purposes of budgeting and inventory valuation.

Direct Labour-Hours

The total hours worked by employees directly involved in manufacturing a product.