Which Set of Characteristics Best Identifies a Pure Monopoly

question 18

Multiple Choice

Which set of characteristics best identifies a pure monopoly?

• A) many firms, homogeneous product, significant barriers to entry, significant nonprice competition, and considerable power over price
• B) few firms, differentiated product, no barriers to entry, the absence of nonprice competition, and considerable advertising
• C) one firm producing a product with no close substitutes, significant barriers to entry, and considerable power over price
• D) many firms, differentiated product, few barriers to entry, and nonprice competition
• E) few firms, differentiated product, significant barriers to entry, and significant amounts of nonprice competition

---

Definitions:

Underapplied

A situation where the allocated manufacturing overhead cost is less than the actual overhead incurred, leading to a discrepancy in accounting records.

Overapplied

refers to a situation where the allocated overhead costs exceed the actual overhead costs incurred.

Manufacturing Overhead

All indirect costs associated with manufacturing, excluding direct materials and direct labor, such as maintenance and utilities.

Raw Materials Inventory

The total cost of all the raw materials that are currently stored by a company and ready to be used in production.