Which One of the Following Is the Best Description of a Monopolist

question 157

Multiple Choice

Which one of the following is the best description of a monopolist?

• A) a firm that produces a single product
• B) a firm that is the sole producer of a narrowly defined product class, such as yellow, grade-A butter produced in Jackson County, Wisconsin
• C) a firm that is the sole producer of a product for which there are no good substitutes in a market with high barriers to entry
• D) a firm that is large relative to its competitors

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities, such as rent, insurance, and salaries, over a certain period.

Composite Unit

A composite unit is an accounting measurement that combines the attributes of multiple units of a similar product or service into a single representation for easier management or evaluation.

Sales Mix

The proportion of different products or services that make up a company's total sales, affecting overall profitability and performance.

Variable Costs

Costs that vary directly with the level of output or production activity, such as raw materials and direct labor expenses.