The Key Element in Preserving a Monopoly Is

question 22

Multiple Choice

The key element in preserving a monopoly is

• A) government subsidy of critical enterprises.
• B) keeping potential rivals out of the market.
• C) guaranteeing availability of substitute products.
• D) increased advertising expenditure.

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Definitions:

Loss on Disposal

Loss on disposal occurs when the proceeds from the sale of an asset are less than its carrying amount on the books, resulting in a financial loss.

Bad Debt Expense

An expense reported on the income statement, representing the amount of uncollected receivables from customers during a period.

Gross Profit

Gross profit is the difference between sales revenue and the cost of goods sold before deducting overheads, interest, taxes, and other expenses.

Net Income

The amount of profit left after all operating expenses, taxes, and interest have been deducted from total revenue.