The Simplest Way for a Monopoly to Arise Is for a Single

question 167

Multiple Choice

The simplest way for a monopoly to arise is for a single firm to

• A)decrease its price below its competitors' prices.
• B)decrease production to increase demand for its product.
• C)make pricing decisions jointly with other firms.
• D)own a key resource.

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Definitions:

Net Sales

Sales revenue less sales returns and allowances and less sales discounts.

High-Low Method

A technique used in management accounting and cost accounting to split fixed and variable costs based on the highest and lowest levels of activity.

Mixed Cost

Expenses that have both a fixed and variable component, changing with the level of activity.

Variable Cost

Costs that vary directly with the level of production or with the volume of output.